Japan 'Quake Pushes UK Gas and Power Prices to Record Levels

LONDON, March 14, 2011 - The impact of the Japanese earthquake boosted UK gas and power prices
further on Monday morning, as concerns persist over possible liquefied
natural gas (LNG) diversions to Japan.

Both UK gas and power prices for delivery this year have traded at their
highest levels since 2008.

The Summer '11 NBP contract traded up to 64.60 pence per therm (p/th)
shortly after the open, a rise of 7% from Friday's close. This was the
highest level the contract has traded at since October 2008, according to
ICIS Heren data. This level is 59% higher than last summer's average system
price.

The key Day-ahead contract, for gas delivered the next day in the UK,
also traded 7% higher than Friday's closing price, to trade at 64.25p/th.

Gas for delivery in April dealt up to 64.53p/th - 8% higher than Friday's
close.

Japan is expected to boost LNG demand to cover its electricity production
with several nuclear plants out of action. This demand could mean vessels are
diverted from elsewhere in the world, including the UK.

LNG now covers around 20% of the UK's daily gas needs and is a growing
part of the country's supply mix.

High gas prices have also had an impact on power, with typically around
35-40% of the UK's power demand met from gas-fired generation.

Power for delivery in the UK in April has traded at record levels on
Monday morning, with the Baseload contract reported opening at GBP53.75 per
megawatthour (MWh), and reaching GBP53.85/MWh.

UK power April '11 Baseload opened at a GBP53.75/MWh - up 5% from
Friday's close. By 10:00 London time, the contract had traded as high as
GBP53.85/MWh.

The highest level is GBP2.70/MWh higher than power delivered for April
this year has ever traded previously.

ICIS Heren data shows that these are the highest prices for power
delivered during the month of April since 2008.

"UK power takes a strong lead from gas prices because gas-fired plants
are the most flexible and able to respond to supply and demand signals from
market pricing," said Zoe Double, editor of European Daily Electricity
Markets.

Notes for editors:

Baseload power refers to power delivered continuously over that period -
24 hours a day, seven days a week.

LNG is natural gas that has been converted temporarily to liquid form for
ease of storage or transport.

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    For further information please contact:

    Edward Cox
    Editor, European Spot Gas Markets
    ICIS Heren
    t: +44-20-7911-1772
    e: ed.cox@icisheren.com

    www.icis.com/heren

    Zoe Double

    Editor, European Daily Electricity Markets
    ICIS Heren
    t: +44-207-911-1875
    e: zoe.double@icisheren.com

    www.icis.com/heren

For further information please contact: Edward Cox, Editor, European Spot Gas Markets, ICIS Heren, t: +44-20-7911-1772, e: ed.cox at icisheren.com ; Zoe Double, Editor, European Daily Electricity Markets, ICIS Heren, t: +44-207-911-1875, e: zoe.double at icisheren.com