Monday, 14 March 2011

U.K. Gas Prices Jump Amid LNG Competition on Japan Nuclear Halts

U.K. natural gas for delivery next winter rose after the March 11 earthquake in Japan halted nuclear power stations, raising concern that liquefied natural gas cargoes may be diverted away from Britain.

Gas for winter, the six month period starting in October, gained as much as 5.1 pence, or 7.4 percent, to 74 pence a therm as of 7:53 a.m. in London, according to broker prices compiled by Bloomberg. That’s equal to $11.87 a million British thermal units and the highest since November 2008. U.K. summer gas prices also rose.

The U.K. relies on supplies from countries such as Qatar and Algeria for LNG to supplement waning North Sea gas output.

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