UK GAS-Prices fall on oversupplied system, weaker oil

* Gas system oversupplied by 34 mcm

* Vesterled flows rise by 14 mcm from Weds

* North Morecambe terminal set to restart

Nov 17 (Reuters) - British prompt gas prices fell on Thursday morning as higher flows from Norway and the Continent left the system strongly oversupplied, despite colder weather boosting gas demand for heating.

Gas for immediate delivery fell 1.6 pence or 3.45 percent, to 44.75 pence per therm by 0930 GMT, while the day-ahead contract was down 1.25 pence or 2.68 percent, to 45.40 pence/therm.

Traders said the strong pound and a glut of gas in the system was pushing down prompt prices despite dropping temperatures.

Britain's gas system was oversupplied by 34 mcm, with demand forecast at 276 mcm and supply at 310 mcm, National Grid (LSE: NG.L - news) data showed.

Imports from Norway via the Vesterled pipeline rose by 14 mcm/day to 35 mcm/day, while imports from the Netherlands via BBL pipeline gained by around 10 mcm/day.

Britain's biggest energy supplier, Centrica (Frankfurt: A0DK6K - news) , said it expected flows at its 7.7 mcm/day North Morecambe (Barrow) terminal to restart at noon on Thursday.

One LNG cargo was expected to arrive to Britain on Thursday, and another on Nov. 23.

Maximum temperatures were set to fall by about 3 degrees Celsius on Friday, the UK's Met Office said, boosting demand for heating.

Further along the curve, contract for gas delivery in December fell by 0.6 pence to 47.50 pence/therm, while the contract for next-season was down by 0.5 pence to 40.75 pence/therm.

Longer-term prices were weighed by lower crude oil futures on Thursday after official inventory reports indicated a larger-than-expected build in U.S. oil stocks.

The UK day-ahead baseload power price rose one percent to 50.75 pounds per megawatt hour, with peak wind power output expected to fall to 4.9 gigawatts (GW) on Friday from 6.4 GW on Thursday.

In the Netherlands, the day-ahead gas price at the TTF hub fell 0.15 euro to 17.30 euros per megawatt-hour (MWh).

In the European carbon market, the benchmark Dec. 16 contract firmed 0.08 euro to 5.63 euro a tonne.

European next-year coal prices fell $5.90 or 8.5 percent to $63.80 a tonne, down more than 19 percent from a more-than-two-year high of $79 on Nov. 7. (Reporting by Nerijus Adomaitis; editing by Jason Neely)