UK markets closed

UK GAS-Prompt prices rise on short system amid FX volatility

* Gas network undersupplied

* Thin liquidity on forward contracts

June 27 (Reuters) - British prompt gas prices rose on Monday as the transmission grid ran slightly short of supply because of reduced intake from Norway after an outage.

Gas for delivery on Tuesday gained 0.6 pence per therm to 35.40 p/therm by 0940 GMT, while gas for delivery in July traded at 35 p/therm, up 0.42 p/them.

The gas network was undersupplied by 1.8 million cubic metres/day (mcm), with daily demand estimated at 154 mcm/day, National Grid (LSE: NG.L - news) data showed.

An outage at Norway's Nyhammna gas field curbed output by 10 mcm/day and led to a reduction in deliveries to Britain, though supplies are expected to pick up during the course of the day.

"Total (LSE: 524773.L - news) demand is still well below seasonal normal levels at 170 mcm, in line with limited demand from storage injections and leaving the system expected to close the session long," Marcel Boonaert, head of trading and portfolio at Wingas UK.

Last week's shutdown of Britain's Rough gas storage site -- the country's largest -- for 42 days has led to a drop in overall demand because it is not possible to replenish stored reserves.

More liquefied natural gas (LNG) shipments are set to arrive in UK ports, with the latest new tanker from Qatar, the Al Mafyar, due on July 6.

The pound's fall against the euro and U.S (Other OTC: UBGXF - news) . dollar after Britain voted to leave the European Union on Thursday sent UK gas prices higher on Friday.

"Trading today could again be dominated by foreign exchange rates as it is a looming risk if sterling continues to fall against other major currencies," Thomson Reuters (Dusseldorf: TOC.DU - news) analyst Oliver Sanderson said.

The value of the pound declined by 3.14 percent against the dollar and 2.15 percent against the euro on Monday.

There was thin liquidity in forward contracts, with trade curbed by the uncertainty over the consequences of Britain leaving the EU. The benchmark winter 2016 contract fell 0.2 p/therm.

In the Netherlands, the day-ahead gas price at the TTF hub fell by 0.02 euros per megawatt hour (MWh) to 14.43 euros/MWh.

In the European carbon market, front-year EU allowances eased slightly, dipping by 0.09 euros to 4.87 euros a tonne.

(Reporting by Oleg Vukmanovic; Editing by David Goodman)