UK Wholesale Spot Gas Prices Reach 2010 High

LONDON, July 12, 2010 - Spot UK wholesale gas prices on Monday reached the highest level of the
year as the key Day-ahead contract traded at 51.50 pence per therm. This is
above peak January prices when demand was more then double current levels.

UK wholesale prices have been rising in the past month because of high
demand for UK gas to be exported to Continental Europe and a reduction in
send out of liquefied natural gas (LNG) from UK terminals.

In the past week, a drop in Norwegian imports and UK system maintenance
has put further pressure on the UK supply system and spot prices have risen
as a result.

The Day-ahead price for the summer to date has averaged 39.30 pence per
therm. Last winter, the Day-ahead contract averaged 31.74 pence per therm.

The price for the coming winter reached 57.15 pence per therm on Monday,
compared with 45 pence per therm in mid January.

"Although the UK spot price has reached a year high, it is below levels
on the Continent. This is maintaining interest in UK gas exports, which is
one of the main bullish price drivers. UK prices could rise further if the
current combination of high exports, lower Norwegian imports and lower LNG
flows continues," said Edward Cox, Editor of European Spot Gas Markets at
ICIS Heren.

The UK is becoming more dependent on gas imports as North Sea reserves
decline. Recent government data showed the UK was a net importer of gas in
the first quarter of 2010 for the first time since 1968.

In the first quarter, around 25% of UK gas was sourced from LNG imports.
Norway also typically provides around 25% of the UK's gas supply through two
main pipeline connections.

The UK increasingly has to compete for gas on a European and global-wide
basis.

Note to editors :

The majority of wholesale gas bought and sold in the UK is done on a spot
basis. Major utilities who buy gas in order to produce electricity are
involved in hedging. This means they will typically buy a certain share of
their gas on the forward market which includes contracts such as the next
month or the next season.

LNG is gas which has been liquefied. This allows it to be moved on a
dedicated LNG carrier to any receiving terminal with regasification capacity.
This has boosted the connection between markets around the world.

ICIS Heren is an information service provider for gas, liquefied natural
gas, power, carbon and coal market intelligence. We publish a suite of
tailored reports providing news, analysis, benchmark price assessments and
indices. Through our reports we aim to bring liquidity and transparency to
power and gas hubs, helping you analyse the sector and make informed business
decisions.

For more information visit www.icis.com/heren

Follow us on Twitter www.twitter.com/icisheren

Reed Business Information

ICIS is part of Reed Business Information, www.reedbusiness.co.uk,
(RBI), a division of Reed Business and a member of Reed Elsevier plc (525),
(UK:REL) (US:RUK) (NL:45443) the world's leading publisher and information
provider.

RBI publishes over 100 market leading publications, directories and
online services, and organises many industry conferences and awards. The RBI
portfolio includes Banker's Almanac, Computer Weekly, Farmers Weekly, Flight
International, ICIS, Kellysearch, New Scientist, Personnel Today, Totaljobs
and XpertHR. For a full listing visit www.reedbusiness.co.uk

Contact details, for more information and interviews:

    Edward Cox
    Editor, European Spot Gas Markets
    ICIS HEREN
    Tel: +44(0)20-7911-1772
    E-mail: ed.cox@icisheren.com

Contact details, for more information and interviews: Edward Cox, Editor, European Spot Gas Markets, ICIS HEREN, Tel: +44(0)20-7911-1772, E-mail: ed.cox at icisheren.com