U.K. natural gas may be poised to lose its biggest premium in 19 months against New York-traded supplies as Qatar begins projects to export liquefied fuel.
The Middle East emirate, the world’s biggest liquefied natural gas producer, said Oct. 6 it plans to start two plants by February, boosting export capacity by 15.6 million metric tons, or about 25 percent of annual U.K. consumption. Qatar also restarted as many as six units that were shut earlier this year for maintenance amid a glut of the fuel.
The premium of front-month gas on London’s ICE Futures Europe exchange relative to contracts on the New York Mercantile Exchange rose to $3.77 per million British thermal units yesterday, its widest level since Feb. 9, 2009, amid record demand for U.K. fuel supplies from European buyers. The average difference this year has been $1.33 per million Btu.
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