LNG Cargoes Damping U.K. Natural Gas Prices as Pound Beats Yen - Businessweek

LNG Cargoes Damping U.K. Natural Gas Prices as Pound Beats Yen - Businessweek:



"Increased liquefied natural gas deliveries into the U.K. are helping damp prices in Europe’s biggest market as a stronger pound helps narrow the discount of the chilled fuel in Europe to Asia.



The discount of LNG in southwest Europe to prices in northeast Asia fell to its lowest in more than a year on May 5, according to World Gas Intelligence assessments for delivery in four to eight weeks. U.K. gas supply from LNG terminals, which get most of their fuel from Qatar, last month rose to near five-year average levels from near the lowest since 2009 at the end of November, National Grid Plc data show.



U.K. natural gas fell for a fifth month in April after the mildest winter in seven years reduced demand for fuel to pump into storage before the winter heating season. Britain’s currency jumped 9.5 percent in the past year, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, as spreading economic growth boosts bets the Bank of England will raise interest rates. That compares with a 2.3 percent weakening in the yen."



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