UK gas price risk over LNG supplies Britain has become increasingly dependent on shipments of LNG as domestic production of gas falls "precipitously," the analysts at Merrill Lynch Bank of America said. LNG imports accounted for about 25pc of UK supplies last year. But it could face shortages as rising demand for LNG in Asia, exacerbated by the shutdown of nuclear plants after the Fukushima disaster in Japan, sees cargos diverted east. Asian LNG prices could be double those in Europe this year, the analysts said in a research note. "Qatar has consciously sent tankers to Asia which provides better netbacks (prices), thus increasing the risk of gas shortages in Europe," they wrote. It is not implausible that UK LNG imports fall to zero by the end of 2012 especially if none of Japan's nuclear power plants are re-started this year.... With Asian demand resurging, UK and European gas prices will have to increase to stem the ongoing diversion of LNG cargoes to Asia. They said UK gas prices for winter 2012/13 could increase to 90p a therm, compared with current trading levels for next winter of 71.7p a therm. The decline in domestic UK gas production - which fell by a "staggering" 10pc in 2011 - was part of a long-term trend and was likely to continue because many UK gas fields are already mature, and due to "the increased taxation in the UK," the analysts said.