(Fixes typographical error in paragraph 5)
* Gas demand 29 percent above normal
* Four LNG tankers to arrive over next 10 days
April 22 (Reuters) - British gas prices rose on Fridayafternoon, reversing earlier losses as oil prices rallied onhopes a global supply glut may be easing, and an outage atNorway's Skarv field was extended.
The contract for gas delivery in June hadjumped by almost 5 percent to 29.39 pence/therm by 1545 GMT,while the contract for gas delivery next winter wasup by 2.3 percent to 36.20 pence/therm.
Oil prices jumped more than 2 percent on Friday and werepoised for a third week of gains as market sentiment turned moreupbeat.
Strong gasoline consumption in the United States, increasingsigns of declining production around the world and oilfieldoutages have underpinned a return to investment in the sector,traders said.
An ongoing outage at BP's Skarv gas field offshoreNorway was extended until Saturday, with production capacity cutby 10.8 million cubic metres (mcm) per day on Friday, supportingprompt prices.
British gas for within-day delivery rose by 3.6percent to 31.50 pence per therm, while prices for next Monday gained 3.9 percent to 31.90 pence/therm.
Norwegian gas imports through the Langeled pipeline,Britain's main subsea gas import route, have already been downto 22 mcm/day due to ongoing maintenance at Easington terminal,which is scheduled to last until May 3.
The reduction in supplies from Norway comes at a time whengas demand for heating was set to rise due to fallingtemperatures in Britain.
Demand for Friday was forecast to be at 254 mcm, about 29percent above the seasonal norm, National Grid data showed.
"It is expected to remain cold for the rest of next week,with a mix of sunshine and showers, often accompanied by a brisknortherly wind," the UK Met Office said.
Supply, however, should be improved with arrival of newliquefied natural gas (LNG) cargoes.
Two LNG tankers confirmed Britain as their destination fromQatar on Friday, taking the number of LNG tankers expected toarrive in the country over the next 10 days to four.
In the European carbon market, front-year allowances firmed 0.2 euro or 3.48 percent, to 5.95 euros atonne.
In the Netherlands, the day-ahead gas price at the TTF hub rose 0.42 euro/MWh or 3.3 percent at 13.20 euro/MWh. (Reporting by Nerijus Adomaitis in Oslo; Editing by MarkPotter)