Reuters: UK gas prices retreat as Asia lures Europe's LNG

British prompt gas prices fell on Monday as output from liquefied natural gas (LNG) terminals jumped and revised weather forecasts sapped demand, countering the impact of less frequent seaborne gas imports as Asia snatched more of Europe's share.

"With a resurgent Asia, it looks as if the UK, which is facing poor growth prospects, will either have to pay up or see increasingly more LNG diverted to Japan, for example," a trader with a major UK utility said.

Qatar's policy of sending gas tankers to higher-paying markets in Asia has heightened the risk of gas shortages at Europe's main hubs, which are more dependent than ever on LNG, traders and analysts say.  MORE