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UK GAS-Spot price drops below two-week low as supplies rise

* New LNG cargo delivery due on May 28

* Gas grid network oversupplied

May 23 (Reuters) - British wholesale gas prices fell on Monday as Norwegian supply and domestic output ramped up, helped by a resumption in flows from the Bacton Seal terminal hit by an outage last week.

Gas for immediate delivery fell by 0.85 pence per therm to 29.25 pence by 0818 GMT, its lowest trading level since May 5, as a fresh Qatari liquefied natural gas (LNG) cargo was scheduled to arrive in the UK on Saturday.

Next (Other OTC: NXGH - news) -day gas traded 0.45 p/therm lower at 29.50 p/therm.

With (Other OTC: WWTH - news) demand expected to be 216.2 million cubic metres (mcm) per day and supply at 227.8 mcm, the system was 11.6 mcm/day oversupplied, National Grid (LSE: NG.L - news) data showed.

Imports through Norway's Langeled pipeline jumped to 45 mcm/day, compared with 14 mcm/day overnight and about 25 mcm/day on Friday.

Meanwhile, output from the UK Continental Shelf rose to 145 mcm/day from 140 mcm/day on Friday, boosted by the return from an unplanned outage of Britain's Bacton Seal terminal.

"(Gas) demand levels remain reasonably steady, though a fall in output from wind farms has seen (gas-fired power plant) nominations rise to 46 mcm/day," said Marcel Boonaert, head of trading and portfolio at Wingas UK.

The Hornsea gas storage site, forecast to pump out 7 mcm/day, might contribute less given a planned outage that could help to balance the transmission system, he added.

Falling crude oil prices, coupled with predictions of abundant supply, helped to push prices lower across prompt and forward contracts.

Brent oil futures dropped 33 cents to $48.39 a barrel on a strong dollar and signs that global crude supply is holding up despite a spike in production outages.

Gas for next-month delivery fell 0.40 pence to 28.90 p/therm, while July gas shed 0.24 pence to 29.15 p/therm.

Seasonal contracts also fell in line with oil prices, with winter 2016 down 0.45 pence at 35.25 p/therm.

In the Netherlands, the day-ahead gas price at the TTF hub fell 0.03 euros to 12.82 euro per megawatt-hour.

In the European carbon market, front-year allowances eased by 0.08 euros, or 1.3 percent, to 5.89 euros a tonne. (Reporting by Oleg Vukmanovic in Milan; Editing by David Goodman)