UK gas prices fall on weather, supply boosts


* Day-ahead gas softens as supplies rebound

* Shell's Nyhamna gas plant ups output

LONDON, Oct 11 (Reuters) - British prompt gas prices fell onFriday morning as warmer weather weighed on demand and Norwayboosted deliveries to the UK following maintenance-relatedsupply interruptions earlier this week.

The price of Monday gas fell 0.40 pence to 63.50 pence atherm at 0900 GMT as supply outstripped demand with the networkoversupplied by 15 million cubic metres/day (mcm/day), which isroughly seven percent of demand.

"Prices are slightly weaker on the back of more Norwegiansupply and the weather's a bit warmer," a trader from a Europeanutility said.

Month-ahead gas dropped 0.30 pence to 63.20 pence while thepeak winter delivery contract in the first-quarter 2013 edgedslightly lower, down 0.15 pence at 65.7 pence on the day.

Norwegian pipeline gas exports rose strongly on Fridayindicating that Royal Dutch Shell's

Nyhamna gasprocessing plant was back in operation.

Maintenance at Nyhamna reduced output by 47 mcm/day onThursday, Norway's gas grid operator Gassco said.

Output from Nyhamna was reduced by 47 mcm/day on Thursdayowing to maintenance, Norway's grid operator Gassco said.

The plant, which processes gas from the giant offshore OrmenLange gas field before it is shipped to Britain, has an overallcapacity of 70 mcm per day, and feeds the Langeled gas pipeline,UK's main undersea gas import route.

Flows through the 70 mcm Langeled pipeline, UK's main subseagas import route, was up to 69.3 mcm/day from 43.8 mcm/day aprevious day, putting total Norwegian exports to Britain at 83.3mcm/day.

Point Carbon meteorologist Fredrik Cronvall forecast a trendof warming weather from next week especially during the nights.

"Daytime temperatures are expected around 10-13 degreeCelsius in the beginning of the week and 12-15 degrees C in theend," Cronvall said.

Higher Norwegian deliveries reduced demand for storagewithdrawals to balance Britain's transmission network stretchedpartly due to a sharp cut in liquefied natural gas (LNG)shipments, Point Carbon analysts said.

At present there are no scheduled LNG shipments heading tothe UK, port and ship-tracking data shows.

Further out on the curve, gas prices for delivery nextsummer dropped below 61 pence, following crude oil prices down.

Front-month Brent crude futures

fell more than $1 abarrel to $114.37 on Friday after the International EnergyAgency (IEA) said it saw a gradual easing of oil prices over thenext five years due to sluggish economic growth.

In the power market spot prices rose, with contracts forbaseload (24s) delivery on Monday climbing 1.20 pounds permegawatt-hour (MWh) to 47.15 pounds a MWh.

(Reporting by Oleg Vukmanovic, editing by William Hardy)

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

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