EUROPE GAS-Prices fall as wind power ramps up

LONDON, Sept 22 (Reuters) - British and European wholesale
gas prices fell on Wednesday morning as expectations of higher
output from wind farms curbed power plant demand for gas.

* The British within-day gas contract was down
7.00
pence at 173.00 p/therm by 0935 GMT.

* The British day-ahead contract was down 7.50
pence
at 175.00 p/therm.

* Peak wind power generation was forecast at 10.4 gigawatts
(GW)
on Wednesday rising to 12.8 gigawatts (GW) on Thursday, Elexon
data showed.

* Higher wind output typically reduces gas demand from power
plants.

* Britain's gas system was over-supplied on Wednesday, with
demand
forecast at 121.3 million cubic metres (mcm) and supply forecast
at 148.5 mcm, National Grid data showed.

* Analysts at Refinitiv forecast demand for gas from power
stations at 38 mcm from Wednesday, down 13 mcm on the previous
forecast.

* Traders said that despite some respite this week, prices
remain
near record highs with long-term fundamentals such as weak stock
levels and low imports of liquefied natural gas still weighing
on the market.

* HSBC analysts said they have increased their gas price
forecasts
substantially in light of the recent bull run and extreme
tightness in the global gas market.

* "With little new gas/LNG supply coming in the near term
and
consumption about to rise sharply in the winter, we expect gas
prices to remain at exceptionally high levels this winter in the
$15-20/mmBtu range with risks skewed to the upside in the event
of a cold winter," they said.

* "Prices should remain elevated next summer before
normalising in
2023," they added.

* The British October gas price was down 8.75 pence at
178.00
p/therm.

* The October gas price at the Dutch TTF hub, a European
benchmark, was down 1.95 euros at 70.70 euros per
megawatt hours (MWh) or around $24/mmBtu.

* The benchmark Dec-21 EU carbon contract was down
0.06
euro at 60.09 euros per tonne.

* The benchmark Dec-21 British carbon contract was
down
0.28 pounds at 55.50 pounds per tonne.
(Reporting By Susanna Twidale; editing by Nina Chestney)