UK GAS-Prices dip on oversupply, higher domestic output

Nov 19 (Reuters) - British gas prices fell on Thursday due to an oversupplied system caused by rising Dutch deliveries and higher domestic output, unwinding prompt gains made during the week.

A jump in flows from the Netherlands came despite a Dutch court order on Wednesday to curb production at the giant Groningen gas field to 27 billion cubic metres (Bcm) per year from the government's target of 33 Bcm, thinning average exports to Britain.

Relatively mild weather, low demand and ample supply from Norway, Russia and rising gas tanker shipments arriving in north-west Europe dampened the impact of the decision.

British gas prices for delivery on Thursday fell 1.70 pence per therm to 35.30 p/therm, with gas for Friday trading unchanged compared with its Wednesday settlement level at 36.35 p/therm.

The market was oversupplied by 11.7 million cubic metres/day (mcm) of gas, according to National Grid (LSE: NG.L - news) data, showing demand at 251.8 mcm/day.

Analysts at Thomson Reuters Point Carbon said a combination of higher domestic output, up at 152 mcm compared with an average of 139 mcm last week, and rising Norwegian flows contributed to the soft market.

In the Netherlands, the day-ahead gas price at the TTF hub fell 0.30 euros to 17 euros per megawatt-hour.

In Europe's carbon market, the front-year EU Allowance (EUA) price dipped 0.01 euros to 8.59 euros per tonne. (Reporting by Oleg Vukmanovic in Milan; Editing by Mark Potter)