Monday, 2 April 2012

UK gas prices fall, Yemen LNG explosion supports May prices

British front-month gas prices found support on Monday from news Yemen's liquefied natural gas (LNG) exports would be cut by four cargoes following a pipeline explosion, while other contracts eased in line with weak equities markets, traders said.

British gas for delivery in May traded above historical closing levels on Monday at 60.30 pence per therm as British LNG imports could suffer from other buyers offering a premium over UK prices to attract lost exports from Yemen.

"The news should provide some good support," said a UK gas trader at a utility. "But equity weakness is also feeding into the oil and gas complex."
Yemen LNG said late on Friday its production would drop by four cargoes following the explosion of a pipeline which feeds the terminal with gas.

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