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.
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.
(Source: http://www.thisismoney.co.uk/markets/article.html?in_article_id=525580&in_page_id=3)
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