* Yemen LNG output down by four cargoes after explosion
* Prompt gas falls as demand slips 21 pct below normal
LONDON, April 2 British front-month gas prices
found support on Monday from news Yemen's liquefied natural gas
(LNG) exports would be cut by four cargoes following a pipeline
explosion, while other contracts eased in line with weak
equities markets, traders said.
British gas for delivery in May traded above historical
closing levels on Monday at 60.30 pence per therm as British LNG
imports could suffer from other buyers offering a premium over
UK prices to attract lost exports from Yemen.
"The news should provide some good support," said a UK gas
trader at a utility. "But equity weakness is also feeding into
the oil and gas complex."
Yemen LNG said late on Friday its production would drop by
four cargoes following the explosion of a pipeline which feeds
the terminal with gas.
"Production has stopped but the loss of production is
expected to be limited to four cargoes as the LNG plant was due
to shut down on April 15 for annual maintenance," the company,
owned by France's Total, said.
Yemeni LNG represented around 2 percent of UK LNG imports
last year and the last cargo arrived in July, latest government
But other buyers of Yemen LNG such as Japan, Korea or China,
may seek to fill the shortfall with other spot supply, which
Britain also competes for.
Other UK gas contracts traded lower on Monday, reflecting
the well supplied system and weak demand picture.
Day-ahead gas fell 1.45 pence to 60.35 pence per
therm as gas demand slipped 21 percent below seasonal norms
thanks to mild weather.
The system was around 8 million cubic metres per day
(mcm/d)oversupplied on Monday, despite ongoing supply losses
from Total's Elgin platform.
Benchmark front-season gas, which has rolled to the winter
2012/13 contract, traded 0.30 pence lower at 74.80 pence.
Power prices rose one pound to 47.75 pounds per
(Reporting by Karolin Schaps; editing by James Jukwey)