UK GAS-Prices rise as cold snap continues

LONDON, Dec (Shanghai: 600875.SS - news) 28 (Reuters) - British wholesale gas prices rose on Thursday morning as a cold snap continued across the country, boosting demand for gas for heating.

* Day-ahead gas price up 0.10 pence at 55.35 p/therm by 0943 GMT. * "With (Other OTC: WWTH - news) a brief cold snap the LDZ (local distribution zone) consumption will increase to 260 mcm (million cubic metres) today, up 12 mcm compared with the previous forecast," analysts at Thomson Reuters (Dusseldorf: TOC.DU - news) said in a daily research note. * Britain’s Met Office forecast zero degree Celsius temperatures for parts of the country on Thursday but predicted temperatures could reach double digits by the weekend. * Natural gas is used to heat as much as 80 percent of British homes, which make up 35 percent of demand. * Gas system almost balanced with demand forecast at 325.6 mcm and flows at 321.7 mcm/day, National Grid (LSE: NG.L - news) data showed. * Demand was 6 percent higher than the seasonal norm of 306.4 mcm, the data showed. * Further out on the curve, prices for gas for January nudged higher but February slipped as temperatures are expected to rise, one trader said. * January contract up 0.05 p at 55.55 p/therm. * February contract down 0.30 p at 55.70 p/therm * Day-ahead gas price at the Dutch TTF hub down 0.25 euro at 19.70 euros per megawatt-hour. * Benchmark Dec-18 EU carbon contract up 0.05 euro at 8.22 euros per tonne. * Thomson Reuters analyst view: http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageid=united-kingdom-gas (Reporting by Susanna Twidale; Editing by Mark Potter)