UK GAS-Colder forecast prompts wholesale price rise
* Forecasts show much colder spell next week
* Supplies from Norway fall by 7 mcm/day
Jan 6 (Reuters) - Wholesale British gas prices rose by nearly 5 percent on Wednesday on expectations of greater demand due to colder weather.
A fall in gas deliveries from Norway, which will require more withdrawal from storage, also contributed to the increase.
Gas for immediate delivery rose 1.65 pence or 4.98 percent to 34.75 pence per therm, while the day-ahead contract gained 1.65 pence or 4.95 percent to 35.00 pence per therm.
"A further downward revision in temperature forecasts for the coming weeks has seen marked increases across the prompt, supporting gains for the rest of winter," a UK-based gas trader said.
Britain's gas system was broadly balanced on Wednesday with demand forecast at 280 million cubic metres (mcm) and supply at 279.4 mcm, according to National Grid (LSE: NG.L - news) data.
Imports from Norway fell by 7 mcm compared to the volumes delivered on Tuesday, data from gas system operator Gassco showed.
Gas flows at Britain's North Morecambe gas sub-terminal restarted on Wednesday morning after dropping to zero the previous day following a compressor failure, but were still running below maximum levels.
About 47 mcm will need to be withdrawn from gas storage to meet demand, mostly from Rough, while withdrawals are set to rise sharply next week, analysts at Thomson Reuters Point Carbon said.
While supply from Britain's liquefied natural gas (LNG) terminals remained steady at around 29 mcm/day, only one new LNG cargo has been confirmed to arrive in January so far.
British gas demand is expected to rise, with temperatures forecast to fall below the seasonal norm next week.
"There is now an increased signal for a brief much colder spell around the middle of next week with widespread overnight frosts," the UK's Met Office said.
While milder weather could return at the end of next week, temperatures are expected to remain near or little above average until the start of February, and further cold spells were possible, it added.
Further along the curve, gas for February was trading up 1.17 pence or 3.5 percent at 33.95 pence per therm.
In the Netherlands, the day-ahead gas price at the TTF hub rose 0.55 euro or 3.74 percent to 15.25 euros per megawatt-hour, while in the European carbon market, front-year allowances firmed 0.01 euro to 8.07 euros a tonne. (Reporting by Nerijus Adomaitis in Oslo; Editing by Alexander Smith)