Last checked at 
By Ekaterina Kravtsova
LONDON, Jan 31 (Reuters) - Asian spot prices for liquefiednatural gas (LNG) have fallen below the UK front-month gasprice, reversing a multi-year trend in which Asian prices had apremium over Europe and prompting some traders to redirectcargoes to Europe from Asia.
Typical Asian LNG premiums over European gas prices occurespecially in winter, when Asian demand jumps. But astemperatures in Asia have been unseasonably warm this winter,Asian gas stocks have remained full, dragging prices in Decemberand January in Asia below winter levels of the past two years.
The price flip happened on Wednesday when wholesalefront-month prices on the UK NBP gas hub opened at around $7.25per million British thermal units (mmBtu), rising above$7.30/mmBtu later in the day, Refinitiv Eikon data showed.
Meanwhile in Asia, Royal Dutch Shell lowered its offer forMarch delivery in the Platts window from $7.45/mmBtu at 0759 GMTto $7.10/mmBtu at 0826 GMT on Wednesday.
At the time of the offer, the British front-month gas pricewas around $7.25/mmBtu. On Thursday, BP lowered its offer forlate March delivery in Asia to $7.10/mmBtu from $7.20/mmBtu.
The UK gas front-month price fell by the session's end to$7.07/mmBtu at 1630 GMT on Wednesday. It opened around$7.06/mmBtu on Thursday on a well-supplied system.
However, as no deals for either Shell or BP offers tookplace in the window on Wednesday or Thursday, the tradeablelevel in Asia may still be below the British gas price.
Traders said they often compare the spread between the Asianfront-month price, which is March now, and the NBP front month,which is February now, because of the difference in deliverytimes to Asia and Europe from Atlantic-based LNG plants.
Also, a cargo's loading date defines which delivery periodsare compared, they said.
"(To decide where to send a cargo) you consider the deliverymonth for price calculation purposes, which may be different forEurope and Asia," one trader said.
"Delivery from the U.S. to Europe takes less time than fromthe U.S. to Asia, so the delivery months might be different."
The UK gas premium over Asian LNG has prompted some tradersto start redirecting LNG cargoes to northwest Europe from Asia.
Vitol on Wednesday changed the destination of two LNGcargoes sourced in the United States to northwest Europe fromAsia due to the discount on Asian prices compared to those inBritain, an industry source familiar with the matter said.
Those cargoes are for delivery in February and March.
Vitol has redirected five cargoes from Asia to Europe sincethe start of the year with arrivals up to March.
The UK front-month price was last above the Japan KoreaMarker (JKM) LNG price in the second quarter of 2016, when theAsian price dropped below UK quotes several times. In February2015, the UK price continuously held above the Asian LNG price.
Europe has seen an influx of U.S. cargoes this winter due tolow Asian demand and prices, with 48 cargoes delivered betweenOctober and March.
Total send-out levels in the UK have averaged 50 millioncubic metres (mcm) per day this month, compared to 6 mcm per dayin January 2018 and 8 mcm per day in January 2017, RefinitivEikon data shows.
However, the latest level is well below the send-outcapacity of over 157 mcm per day, with traders expecting afurther increase in LNG arrivals.
"It is truly an armada of LNG (into Europe), and the best isyet to come in March and April when the winter season is over in(Asia)," the industry source said.
(Reporting by Ekaterina Kravtsova; Editing by Dale Hudson)
