The Energy Contract Company consultancy has just issued its latest review on the UK Gas Market in which it highlights that Forward Curve prices are probably not justified. It points to the fact that Beach Capacity outstrips offtake demand at 105-110% and will continue to do so for the next 3 years before falling and disappearing by 2013. It suggests that prices have been buoyed by bullish sentiment and high oil prices but that the forward curve has not then reflected subsequent drops in either oil prices or the falls seen at the front end of the curve. The report also noted the increasing influence of Norweigian –UK gas imports on domestic price as well as the impact of probable LNG winter imports attracted to the UK by the higher-than-elsewhere gas price. In addition the report has reviewed the drop in Industrial gas demand in the UK as production shifts overseas to lower cost economies. In suggests that demand has fallen by 22% since 1999 although there as been support from power generation. In its pricing-scenarios oversupply will reach a peak in 2010/11 with a Winter price of 71-72p/therm.