UK GAS-Prices decline as pound strengthens against euro

* Pound sterling near two-week high against euro

* Warmer weather forecast, more regular LNG deliveries

LONDON July 13 (Reuters) - British wholesale gas prices mostly declined on Wednesday morning due to gains in the pound against the euro, softer oil prices and on expectations of warmer weather and more regular liquefied natural gas (LNG) deliveries.

Gas for day-ahead delivery was down 0.32 pence at 33.63 pence per therm at 0828 GMT from the previous settlement, while gas for weekend delivery was down 1.00 pence at 33.00 p/therm.

"We have seen (the pound) hold on to yesterday's gains against (the euro) which, along with softer oil this morning, is incentivising European traders to sell UK gas and take up more gas on their long term contracts," said Nick Campbell, analyst at Inspired Energy (LSE: INSE.L - news) .

"The warmer weather, along with the end to most of the Norwegian maintenance and more consistent LNG flows following more regular deliveries, is pushing the prompt lower," he added.

Sterling was trading near a two-week high against the euro on Wednesday as Theresa May was set to take over as Britain's Prime Minister, easing some of the political uncertainty that has dogged the currency in the past few weeks.

Temperatures in Britain are forecast to be above average by the weekend and next week and LNG supply looks healthy.

Lower oil prices also impacted the curve, with Winter 2016 gas down 0.32 pence at 43.60 p/therm.

Crude futures fell on Wednesday as investors took gains after oil prices surged nearly 5 percent in the previous session, partly on the back of a forecast increase in demand next year.

"Prompt prices have softened marginally, coming under pressure from moves further out on the curve, though tightening intra-day supplies may see contracts begin to find support as the day progresses," said Andrew Crabtree, pricing and risk analyst at Wingas UK Limited.

Gas for immediate delivery was up by 0.60 pence at 33.85 p/therm as the system was undersupplied by around 12 mcm.

Centrica (LSE: CNA.L - news) announced an unplanned outage at its North Morecambe gas sub-terminal on Wednesday morning, which has reduced its production rate to 3.4 mcm/day.

In the Netherlands, the day-ahead price at the TTF hub was down by 0.10 euro at 14.20 euros per megawatt-hour.

In Europe's carbon market, the front-year EU allowance price was 0.05 euro lower at 4.58 euros per tonne. (Reporting by Nina Chestney)