Monday, 14 March 2011

Japan quake could mean higher energy prices for UK

Friday’s devastating earthquake and a second explosion at Japan’s Fukushima Dai-ichi nuclear plant may send global gas and electricity prices higher.

Analysts at broker Matrix warn that Japan may lose at least 5% of its generation capacity permanently. This will be made up by gas fired power, requiring larger imports of Liquified Natural Gas (LNG).

LNG prices are already up and it’s only a matter of time before that feeds through to the gas and electricity markets.

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