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UK GAS-Prices rise on lower supply, increased demand

* Langeled imports at 12 mcm/day

* Temperatures expected to cool down this week

May 9 (Reuters) - British wholesale gas prices rose on Monday morning due to increased demand on expectations of cooler temperatures this week and lower Norwegian imports.

Gas for immediate delivery rose by 0.45 pence per therm to 30.30 p/therm at 0755 GMT from the previous settlement, while gas for day-ahead delivery was 0.85 pence higher at 30.50 p/therm.

On the supply side, imports through the Langeled pipeline from Norway are only at 12 million cubic metres (mcm) a day due to less production from the Troll gas field.

An unplanned outage at Nyhamna gas processing plant on also cut Norwegian gas capacity by 8 mcm on Monday.

Supply from the UK Continental Shelf is still below normal levels as it ramps up following outages last week.

Demand for gas for power generation is slightly higher than previously forecast and gas demand for heating is expected to rise over the coming days as temperatures become cooler.

Despite this, Britain's gas system was largely balanced with flows forecast to be around 192 million cubic metres (mcm) a day and demand seen at 191 mcm, according to National Grid (LSE: NG.L - news) data.

Demand from the power sector for gas is expected to increase by 5.1 billion cubic metres (bcm) year-on-year over the summer, due to the increased profitability of burning gas rather than coal, consultancy Energy Aspects said.

Further along the curve, the Summer '17 contract was 0.50 pence higher at 34.10 p/therm.

Oil prices jumped as a huge wildfire in Canada's oil sand region knocked out over a million barrels of daily production capacity, contributing to the tightening of markets over the past few weeks.

In the Netherlands' gas market, the day-ahead price at the TTF hub gained 0.25 euro to 13.00 euros per megawatt-hour.

In Europe's carbon market, the front-year EU Allowance price was up 0.13 euro at 5.99 euros a tonne. (Reporting by Nina Chestney)

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