UK GAS-Prices fall on warmer weather outlook, weaker oil

* Gas market undersupplied by 9 mcm/day

* Gas demand 40 pct above seasonal norm

* Temperatures expected to rise from the weekend

April 28 (Reuters) - British gas prices fell on Thursday morning on falling oil prices and expectations that a cold snap driving demand well above seasonal norm would end this week.

Gas for immediate delivery fell 0.7 pence, or 2.1 percent, to 33.50 pence per therm by 0852 GMT, while day-ahead contract lost 1.6 pence, or 4.51 percent, to 32.85 pence/therm.

With (Other OTC: WWTH - news) gas supply flows at about 267 million cubic metres (mcm) and demand expected to be about 276 mcm, Britain's gas system was 9 mcm undersupplied on Thursday morning, National Grid data showed.

Thursday's demand was more than 40 percent above the seasonal norm of 196 mcm/day, due to unusually cold weather boosting demand for heating.

"The strong bearish driver is that the cold snap is ending and physical conditions should be significantly looser next week," said Oliver Sanderson, a gas market analysts at Thomson Reuters.

Britain's Met Office said temperatures were expected to rise from Sunday to near average next week, while wind speeds are also to increase.

Norwegian gas flows to Britain were down by 14 mcm to 88 mcm/day due to lower flows through the Langeled and the Vesterled pipelines, data from gas system operator Gassco showed.

Due to market tightness this week, British exports of gas to Belgium fell to just 7 mcm/day on Thursday, down from 16 mcm/day earlier this week, while imports from the Netherlands were 15 mcm/day.

Flows into Theddlethorpe gas terminal remained at zero, though there was no notice of unplanned outage, meaning that flows could restart later today to increase supply, traders said.

Meanwhile, supply from LNG terminals remained high at 50 mcm/day, with South Hook contributing 40 mcm/day and Dragon 9 mcm/day, with three new tankers expected to arrive to Britain by May 4.

British gas prices further along the curve fell as oil prices pulled back from 2016 highs.

Contract for gas delivery next quarter fell by 2 pence, or more than 6 percent, to 30.60 pence/therm, while next winter was trading at 36.70 pence/therm, 1.3 pence or 3.42 percent down.

Dutch day-ahead gas price at the TTF hub fell 0.75 euro/MWh or 5.19 percent at 13.70 euro/MWh.

In the European carbon market, front-year allowances eased 0.17 euro or 2.49 percent to 6.67 euro a tonne.

Europe's highest court on Thursday ruled the European Commission's calculation for handing out free carbon permits to industries was flawed, raising the prospect of higher costs for big energy users. (Reporting by Nerijus Adomaitis in Oslo; Editing by Tom Heneghan)