Demand tumbles to working-day low for 2018
Enagas GTS forced to balance long system for fourth day running
Imports from France remain negligible
LONDON (ICIS)--Falling demand weighed on prompt prices at Spain’s PVB gas hub on Friday.
This low demand continued to eat into gas flows from France to Spain via the Pirineos Virtual Interconnector Point (VIPP), which having spiked at the end of July following a heatwave, have subsequently dropped off, with Spain even briefly turning exporter on Thursday, TSO data showed.
On the prompt, demand on Friday was expected to be only slightly above the figure for Thursday, which at just 67.2mcm was the lowest for a weekday in almost exactly a year. The last time a non-weekend day saw lower demand was on 15 August 2017, data from Enagas showed. Underpinning the drop was a fall in power-sector gas demand to 17mcm, the lowest weekday figure since 23 July this year. This reflected the fact that Spain’s summer holidays are reducing demand for gas, at the same time as wind output was above 5GW on Friday according to electricity TSO REE, further trimming demand.
Consequently, technical system manager of the Spanish natural gas grid Enagas GTS was on Friday forced to sell gas to balance the grid for the fourth day in a row. The effect on the OTC market was limited, with the only spot trades concerning gas for Saturday delivery trading twice early on at €23.85/MWh.
Further out, September ‘18 traded below €26/MWh in the morning, but was assessed higher in line with the benchmark TTF, which was bullish as the session wore on.