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UK GAS-UK gas prices fall on warmer weather, strong flows from Norway

Nov 14 (Reuters) - British wholesale gas prices fell on Tuesday morning after temperatures were expected to rise following a short cold spell, reducing gas demand for heating. * Within-day gas price was down 1.23 pence at 53.25 pence/therm, while day-ahead gas fell 1.05 pence to 53.05 pence/therm by 0955 GMT. * Traders said prices fell due to forecasts for the coming days being raised and the gas system being oversupplied due to strong flows from Norway. * With (Other OTC: WWTH - news) temperatures forecast to rise by 3.6 degrees on Tuesday, within-day gas demand for heating was expected to fall to 181 mcm down from 218 mcm the previous day, analysts at Thomson Reuters said. * Natural gas is used to heat as much as 80 percent of British homes, which make up 35 percent of demand. * The gas system was oversupplied by 10 million cubic metres (mcm) on Tuesday morning with demand forecast at 287 mcm and flows at 297 mcm per day, National Grid (LSE: NG.L - news) data showed. * Flows from Norway were running at around 133 mcm/day, near their full capacity * Planned maintenance at a Norwegian gas field is expected to reduce output capacity by 20 mcm/day for a week from Wednesday, the country's gas system operator said. * Analysts at Thomson Reuters (Dusseldorf: TOC.DU - news) said the impact on flows was expected to be lower, at around 10 mcm, as Norway had some spare capacity to partly compensate for the reduction * UK gas production was down slightly on Tuesday due to lower flows into Bacton Shell terminal, while flows to Parenco's Dimlington terminal remained shut due to an ongoing outage. * Gas demand for power generation, however, was expected to rise to 82 mcm/day on Tuesday from 70 mcm the previous day, the analysts said. * Data from the National Grid showed peak wind generation expected to fall to 4.2 gigawatts on Wednesday from 6.3 GW on Tuesday, increasing the need for gas power generation * Further out on the curve, prices also fell. * The December 2017 contract was down 1.3 pence at 54.05 pence/therm. * Day-ahead gas price at the Dutch TTF hub was down 0.43 euro at 19.55 euros per megawatt-hour. * The benchmark Dec (Shanghai: 600875.SS - news) -17 EU carbon contract was down 0.1 euro at 7.25 euros per tonne. * Thomson Reuters analyst view: http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageid=united-kingdom-gas (Reporting by Nerijus Adomaitis in Oslo; editing by Jason Neely)