UK GAS-Prices rise as lower wind output boosts gas demand

* Lower storage withdrawals help tighten supply

* Day-ahead gas up 0.52 p/therm, at 29.10 p/therm

March 30 (Reuters) - British prompt gas prices rose early on Wednesday due to an undersupplied system as lower wind power generation boosted demand for gas-fuelled power plants.

Sharply lower withdrawals from underground storage sites helped further tighten supplies, pushing gas for instant delivery up 0.95 pence per therm at 29.20 p/therm by 0844 GMT, and day-ahead gas trading 0.52 p/therm higher at 29.10 p/therm.

Britain's gas network was undersupplied by 10.20 million cubic metres/day (mcm/day) with demand estimated at 289.6 mcm/day, according to National Grid (LSE: NG.L - news) data.

"Prompt prices have firmed from yesterday, taking direction from the short system and gains on the front month contract,"' Marcel Boonaert, head of trading and portfolio at Wingas UK, said.

The April gas contract rose 0.10 p/therm to 29.20 p/therm.

Both nominated pipeline supplies from the UK continental shelf (UKCS) and LNG terminals were high on Wednesday morning at 149 mcm and 42 mcm respectively.

Imports from Norway were steady at 65 mcm through the main Langeled pipeline.

Britain's largest gas storage site Rough reduced withdrawals to zero overnight due to lack of a price incentive to sell stored reserves on the spot market, analysts said.

One LNG tanker is currently anchored at the South Hook import terminal, and two more are expected to arrive over the next week.

Local distribution zone demand - for heating - was pegged at five mcm/day lower for Thursday, at 170 mcm/day, compared with Wednesday levels, likely due to slightly milder weather expectations.

The summer gas season is due to begin on April 1 which will run until October. This is typically a period of lower demand for gas due to warmer temperatures and a time when many gas infrastructure operators carry out maintenance.

Further out on the curve, the contract for gas delivery winter 2016/17 rose 0.05 pence to 33.10 pence/therm.

Dutch day-ahead gas prices rose 0.17 euro/MWh to 12.10 euros/MWh. In the European carbon market, front-year allowances eased 0.01 euro to 4.78 euro a tonne.

(Reporting by Oleg Vukmanovic in Milan; editing by Susan Thomas)