Cold snap highlights UK’s gas storage tightness

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UK natural gas prices reached 36.55 p/therm as of 14:17 GMT for the week ahead, from 35.15 p/therm from December 31 2009, while the Henry Hub Natural Gas price for the February 2010 contract hit more than $5.8 MCF, up more than 3% from yesterday.

"The UK does not have a high level of storage capacity, and this is highlighted every time there is a spike in demand," says David Hart, oil and gas analyst at energy market researchers Hanson Westhouse. "The UK has difficulty handling these spikes, lik