London — The use of natural gas as a fuel for electricity generation in Spain has started to rebound, scoring support from low temperatures and soft wind power generation, data from S&P Global Platts Analytics showed Tuesday.
Gas-for-power demand jumped to almost 32 million cu m Monday, an 83% increase from the daily average during thefirst 10 days of November. Similarly, local distribution zone gas demand climbed to over 88 million cu m, 26% higherover the same period, the data showed.
LNG regasification volumes increased to 67 million cu m Monday, the highest since late September. At the same time, French natural gas flows flipped again with Spain importing over 4 million cu m Monday. Dutch TTF's front-monthwas still at a premium to the corresponding PVB contract Monday. However, the spread has narrowed to 2.5 euro cents.
"A little bit of everything ... Weather is quite cold, Almaraz I [nuclear power plant] still has not started, and wind is lower than last week," a Spanish power trader said.
Madrid's temperatures are expected to jump to 2 degrees Celsius above seasonal norms Wednesday, up 4 C on the day, a forecast from CustomWeather showed. However, weather is set to get much colder afterward with temperatures dropping 5 C below the average early Week 47.
Wind power output during Week 45 stood at a high/low range of 15.3/7 GW, data from REE showed. This week's output is estimated lower, at about 11.3/6.5 GW.
"Power exports to France are still strong," the trader said.
Spanish power exports to France are expected to run at about 1,691 MWh Wednesday compared to 1,810 MWh a week earlier. Flows were running at an average of almost 800 MWh on November 1, according to IESOE data.
"It's quite cold until the end of November and probably rainy. We could see an increase of the hydro, in December at least," the trader said.
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