EUROPE GAS-Price firm on lower Russian flows, colder outlook

Feb 4 (Reuters) - British and Dutch gas prices rose on
Friday morning, as delivieres of Russian gas ebbed and forecasts
showed colder weather ahead.

The British day-ahead gas price was up by 6.00
pence at 188.00 pence per therm by 1002 GMT, with the weekend
contract up 3.00 pence at 186.00 pence/therm.

The contract for March was up by 8.50 pence at
195.00 pence/therm and its Dutch TTF equivalent
gained 1.20 euros to 81.50 euros per megawatt hour.

Lower nominations for Russian gas supplies through Ukraine
via the Slovakian border point of Velke Kapusany, coupled with a
slightly colder temperature forecast for the end of next week,
was bullish for prices, analysts at Engie EnergyScan said.

Russian volumes delivered through Ukraine to Europe fell for
a third day while gas also continued to flow eastward from
Germany to Poland via the Russian Yamal-Europe pipeline on
Friday morning.

Local distribution zone demand in Europe, which typically
reflects demand for heating, would be 208 gigawatt hours a day
higher in Europe on Monday, and a slight drop in temperatures
would also lift consumption the other working days next week,
Refinitiv analyst Wayne Bryan said in a morning report.

"Some players may look to cover positions with the weekend
ahead and geopolitical risk high," he added.

The absence of de-escalation signs in the Russia-Ukraine
conflict continue to support the market.

However, higher wind output next week that will limit
gas-for-power demand, strong pipeline supply from Norway and
steady arrivals of liquefied natural gas (LNG) cargoes were
bearish drivers mitigating the upside risks, Bryan said.

Meanwhile, the European carbon market extended gains on
Friday, with the benchmark December 2022 contract
hitting a fresh all-time high of 96.38 euros per tonne.

It was last up 1.55 euros at 96.36 euros/tonne.
(Reporting by Nora Buli; editing by Nina Chestney)