Japan, which buys about a third of the world's liquefied natural gas, is poised to import record amounts in the coming year, heralding a surge in prices as demand peaks next winter.
The premium of December U.K. natural-gas futures over the June contract has risen 10 percent since March 10 on concern that supplies to countries such as Britain, the world's third-biggest buyer of the chilled fuel, may be diverted to Japan during periods of greatest demand. The U.K. market is used as a price indicator for spot LNG cargoes around the world.
Japan is seeking alternative fuels with 57 percent of its nuclear power closed following radiation leaks from Tokyo Electric Co.'s Fukushima No. 1 plant. The nation's gas needs may jump 13 percent to an all-time high in the next 12 months, the International Energy Agency said Monday.
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