Natural gas price races to two-year high
The UK is facing a surge in energy prices after Japan's nuclear crisis sent the cost of natural gas soaring to a two-year high.
Surge: Increased Japanese demand could push up UK gas bills
The price of liquefied natural gas (LNG) jumped more than 7% yesterday to reach 74p per therm, on expectations that imports destined for the UK will be diverted to Japan.
Japan is the world's largest consumer of LNG, with 30% of its power supply coming from this source.
Its need for LNG is likely to increase after 11 of its 54 nuclear reactors were shut off due to fears of a meltdown.
The impact could filter through to UK consumers' gas bills, as energy suppliers pass on the rising cost of LNG, analysts warned.
Adam Forsyth, of Matrix Group, said: 'There has already been a reaction in the gas market and we would expect higher prices in the LNG market to have an impact in the UK.'
The forecast provided a boost for companies such as gas explorer BG Group and coal-focused UK power plant Drax, but British Gas owner Centrica - which buys gas on the wholesale markets - fell 6.3p to 325.25p.
Brent crude was up 13 cents to $113.97, as the unrest in the Middle East offset earlier falls on expectations of reduced demand from Japan.
Most watched Money videos
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- How to invest for income and growth: SAINTS' James Dow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Land Rover unveil newest all-electric Range Rover SUV
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mail Online takes a tour of Gatwick's modern EV charging station
- Mini celebrates the release of brand new all-electric car Mini Aceman
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Leapmotor T03 is set to become Britain's cheapest EV from 2025
- Blue Whale fund manager on the best of the Magnificent 7
- Mercedes has finally unveiled its new electric G-Class
- RUTH SUNDERLAND: Stop cynical Royal Mail bid
- BUSINESS LIVE: Ryanair profits soar; AstraZeneca builds...
- Ryanair profits soar to record high of almost €2bn
- Revealed: The investments that will really make a holiday...
- Britain's new bonkers EV: Callum Skye is an £80k electric...
- Who would qualify for a £100 Nationwide loyalty bonus...
- Cadbury owner Mondelez to face scrutiny over selling...
- Australian miner looking to buy Anglo American set to...
- I was 'brokefished' by my friend for £400 - can I salvage...
- AstraZeneca to construct $1.5bn cancer drugs facility in...
- British Land sells stake in Sheffield's Meadowhall...
- Top industrialist Sir Jim Ratcliffe blames high taxes for...
- Keywords Studios eyes £2.2bn takeover by Swedish private...
- Where it REALLY pays to own a holiday let - how to turn a...
- CITY WHISPERS: Boss Cook-ing up a big sparkler to woo De...
- St James's Place facing humiliating exit from FTSE 100
- Sales at Bloomsbury soar thanks to the craze for...
- Revealed: The seven pensions savings habits that could...