November 25, 2016 / 9:07 AM / 3 years ago

UK GAS-Prices rise on expectations of tighter supply

* Day-ahead up 1.22 pence to 48.00 p/therm

* Outages reported in Norway

* UKCS flows fall

LONDON, Nov 25 (Reuters) - British wholesale gas prices rose on Friday morning as a series of outages created expectations of tighter supplies over the weekend.

Gas for immediate delivery was up 0.90 pence at 48.00 pence per therm at 0836 GMT, while the day-ahead contract rose by 1.22 pence to 48.00 p/therm.

UK Continental Shelf flows have fallen 21 million cubic metres (mcm) to 130 mcm/d, compared to average flows on Thursday, as deliveries from Norway through the Vesterled pipeline droppped to zero due to an unplanned outage.

There is also an unplanned outage at Norway’s Heimdal gas field which has reduced Norwegian gas capacity by 13.5 mcm.

In addition, Statoil said an outage at an unnamed gas field off the coast of Norway which started on Nov. 24 was reducing production by 20.1 mcm/day.

Britain’s Centrica has also announced an unplanned outage at its North Morecambe gas sub-terminal which has reduced production to 2.5 mcm. It is scheduled to end at 1000 GMT.

“Quite a few outages announced overnight and this morning seems to have raised fears about short supply, prompting buying,” a UK gas trader said.

On the demand side, gas consumption for heating should go up early next week due to cold weather. However, temperatures are forecast to be slightly warmer than previously expected, according to Thomson Reuters analysts.

Despite the outages, National Grid data shows the British gas system as oversupplied by 7 mcm on Friday, with demand forecast at around 302 mcm and flows at around 309 mcm/day.

In the Netherlands, the day-ahead gas price at the TTF hub rose by 0.17 euro to 18.02 euros per megawatt hour.

In the European carbon market, the benchmark December 2016 contract fell by 0.16 euro to 5.18 euros a tonne. (Reporting by Nina Chestney)

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