UK GAS-Prompt prices decline on reduced demand, high storage levels

LONDON, May 19 (Reuters) - British prompt wholesale gas prices declined on Tuesday morning on above average temperatures, reduced demand and high storage levels.

* The day-ahead contract was down by 0.15 pence at 11.25 pence per therm at 0926 GMT.

* Gas for working days next week was 0.50 pence lower at 11.25 p/therm.

* Traders said warm weather and weak demand was weighing on prices.

* "Extremely weak local distribution zone demand has offset slightly higher gas-for-power demand and higher storage inventories might continue weigh on the price today," Refinitiv gas analysts said.

* Warmer than normal weather is expected to continue across the upcoming long bank holiday weekend.

* Britain's gas system was almost balanced with demand forecast at 184.5 million cubic metres (mcm) and flows at 181.2 mcm/day, National Grid data showed.

* Imports to Britain via Langeled were at 16 million cubic metres (mcm)/day, down 1 mcm compared with the previous day, Refintiv Eikon data showed.

* Flows from the country’s liquefied natural gas (LNG) terminals were at 54 mcm down 1 mcm, the data showed.

* Demand for gas from power stations was forecast at 41 mcm for Tuesday, Refinitiv data showed, up 15 mcm from the previous forecast.

* Peak wind generation is forecast at 4.5 gigawatts on Tuesday, down from around 8 GW the previous day.

* On Wednesday, peak wind output is expected at 5.6 GW, out of a total metered capacity of around 15 GW, Elexon data shows.

* Fundamentally, gas demand is expected to remain weak this year due with industrial production curbed by measures designed to limit the spread of the novel coronavirus.

* Analysts at Rystad Energy forecast global demand for natural gas is expected to fall by almost 2% in 2020.

* Further out on the curve contracts edged higher.

* The Winter 2020 contract was up 0.05 p at 32.80p/therm.

* The Summer 2021 contract was up 0.05 at 30.15 p/therm.

* The day-ahead gas price at the Dutch TTF hub was down 0.10 euro at 4.40 euros per megawatt hour.

* The benchmark Dec-20 EU carbon contract was down 0.19 euro at 20.15 euros per tonne. (Reporting by Susanna Twidale; editing by Nina Chestney)