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 on Friday morning as warmer weather weighed on demand and Norway boosted deliveries to the UK following maintenance-related supply interruptions earlier this week.

The price of Monday gas fell 0.40 pence to 63.50 pence a therm at 0900 GMT as supply outstripped demand with the network oversupplied by 15 million cubic metres/day (mcm/day), which is roughly seven percent of demand.

"Prices are slightly weaker on the back of more Norwegian supply and the weather's a bit warmer," a trader from a European utility said.

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

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

Nyhamna gas processing plant was back in operation.

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

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

The plant, which processes gas from the giant offshore Ormen Lange gas field before it is shipped to Britain, has an overall capacity 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 subsea gas import route, was up to 69.3 mcm/day from 43.8 mcm/day a previous day, putting total Norwegian exports to Britain at 83.3 mcm/day.

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

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

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

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

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

Front-month Brent crude futures

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

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

(Reporting by Oleg Vukmanovic, editing by William Hardy)

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