Tuesday, 15 March 2011

Nuclear crisis forces up UK gas prices

Energy experts have warned that UK energy bills could increase after the Japan earthquake triggered an increase in natural gas prices.
The cost of liquefied natural gas (LNG), which accounted for nearly a third of Britain's gas supply last winter,  has risen sharply since Friday's disaster
knocked out 11 of Japan's 54  nuclear reactors. The price for a summer delivery of LNG to the UK rose  by 6.4% per therm on Monday, with a winter delivery
climbing by 5.8%.

Adam  Forsyth, analyst at Matrix Group, said: "If the price rises and is consistently at a high level then it has to come through to people's gas  bills

Forsyth added that LNG cargo ships can be  diverted away from their original destinations at short notice and that  appears to have been the case with Japan,
which has requested extra  shipments in the wake of last week's disaster to cover the shortfall in  nuclear-generated electricity.


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