* UK gas prices drop across the board
* Local distribution zone gas demand at season high
Jan 14 (Reuters) - British gas prices fell across the board on Thursday as strong supplies outweighed the impact of the high demand for heating due to falling temperatures.
Gas for day-ahead delivery fell 0.85 pence to 32.65 pence per therm, while supply for instant delivery dropped to 32.60 p/therm, down 0.90 p/therm compared with the previous session.
With (Other OTC: WWTH - news) supply flows at about 358 million cubic metres (mcm) and demand pegged at 335.1 mcm, Britain's gas system was 22.9 mcm oversupplied, National Grid (LSE: NG.L - news) data showed.
Thursday's local distribution zone demand - demand for gas, excluding industrial areas - was expected at 250-260 mcm/day, a record so far this winter. LDZ demand is set for further gains over the coming days and weeks, according to gas market analysts.
Britain's Met Office said temperatures would range between 0 and 4 degrees Celsius during the day on Thursday.
Supplies were strong, with domestic output from the UK Continental Shelf 140 mcm/day, while imports from the Netherlands flowed at 30 mcm/day and Norway's main export pipeline Langeled contributed a further 72 mcm/day.
Gas prices also fell along the curve, with the summer 16 contract up 0.6 pence at 29.35 pence per therm.
In the Netherlands, day-ahead gas at the TTF hub fell 0.35 euro to 13.90 euros per megawatt-hour.
In Europe's carbon market, the front-year EU Allowance price fell 0.15 euros to 7.14 euros a tonne. (Reporting by Oleg Vukmanovic in Milan; Editing by Susan Thomas)