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UK prompt gas rises after outage at Norway's Kolsness plant

* Kollsnes to resume full capacity on Friday

* LNG deliveries scarce, send-out drops to 14 mcm/day

* UK gas network undersupplied by 12 mcm/day

LONDON, Oct 4 (Reuters) - British prompt gas prices rose on Thursday after a power failure temporarily halted output from Norway's Kollsnes gas processing plant that feeds pipelines supplying the UK.

The price of day-ahead

gas was 0.05 pence higher at 61.40 pence per therm at 1150 GMT compared with Wednesday's session as power at the Kollsnes facility was quickly re-established and production started to ramp-up, cutting short an earlier rally.

Norway's gas grid operator Gassco initially spooked UK gas traders by warning that Kollsnes output could drop by 22 million cubic metres/day (mcm/day), on top of an existing 30 mcm/day reduction caused by maintenance reported on Wednesday.

Gassco expects Kollsnes to return to its full processing capacity of 145 mcm/day on Friday.

Britain's gas market also faced tight supplies due to low liquefied natural gas (LNG) deliveries from Qatar, reducing total send-out rates from import terminals by 8 mcm to 14 mcm versus Wednesday as stocks dwindled.

"The Kollsnes news caused a bit of a panic earlier but I think that the system is still tight," one trader from a European utility said.

Output from domestic North Sea fields dropped slightly to 97 mcm/day compared with the previous session.

These factors caused the gas system to be undersupplied by 12 mcm/day while demand was pegged about 15 percent below seasonal norms at 186 mcm/day.

Month-ahead gas rose 0.05 pence to 62.50 pence while December gas was trading little changed at 64.70 pence.

Further out on the curve, front-season gas

was

little changed at 69.25 pence.

(Reporting by Oleg Vukmanovic; Editing by Anthony Barker)

((Oleg.Vukmanovic@thomsonreuters.com)(44 207 542 0014)(Reuters Messaging: oleg.vukmanovic.thomsonreuters.com@reuters.net))

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Keywords: MARKETS BRITAIN GAS/POWER