National Grid handled an all-time record demand for gas yesterday with the country using 454 million cubic metres (mcm) – the highest demand since the previous record of 449 mcm in January 2003.
The country received sufficient gas supplies despite disruption to some flows owing to a technical problem in the Norwegian gas fields. The market quickly responded in accordance to a range of signals which included a Gas Balancing Alert – a message from National Grid calling on suppliers to provide more gas.
Record gas demand – 460mcm – has again been forecasted for today (Friday 8 January) but supplies remain robust and no gas balancing alerts are in place today.
Chris Train, Network Operations Director for National Grid, said: “Gas supplies to Britain have been consistently healthy throughout the week. We have managed two supply disruptions associated with technical issues in the Norwegian gas fields. As a result we issued two gas balancing alerts requesting the gas market to supply additional gas or demand response. As a result of the Gas balancing alert and a range of signals the market was quick to respond. The system has worked exactly as it was designed to.”
Britain is fortunate to benefit from a diverse source of supplies. Some 50% of gas supplies come from UK gas fields, with further supplies coming from Europe, Liquefied Natural Gas and storage.
National Grid’s LNG terminal at the Isle of Grain in Kent enabled shippers to contribute a significant amount of gas during the disruption to supplies from the Norwegian gas fields.
National Grid staff have continued to maintain the gas network despite the travel difficulties posed by the severe winter weather.
The number of large gas users on interruptible contracts, who were told to switch to alternative sources of fuel, has been greatly reduced today (Friday 8 January) and will drop to zero tomorrow (Saturday 9 January).
National Grid had asked gas suppliers to tell 27 large gas users to switch from gas to other fuel supplies -12 in the East Midlands and 15 in the North West.
National Grid Director of Network Strategy Jeremy Bending said: "This is not about a lack of gas or a lack of investment in infrastructure or rationing. This is a commercial decision by companies to benefit from discounted prices in exchange for being flexible when demand is at its highest.
“This flex exists not because of a lack of gas but is the most efficient way of providing the required capacity on local pipe networks in these rare circumstances of extreme demand."
Only those who have chosen to be on interruptible contracts are affected. This means they pay lower gas transportation charges to their supplier in return for agreeing to be interrupted at times of very high demand for gas.
The use of interruptible contracts is one of the standard tools National Grid uses to balance the gas network in the conditions we expect to see in a severe winter.
National Grid has asked gas shippers (suppliers) to invoke their interruptible contracts because of the extremely cold weather in those regions.
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For further information contact National Grid on 01926 656536.