EUROPE GAS-Prices firm on Norwegian field outage, Russian supply worries

Jan 28 (Reuters) - British and Dutch gas prices firmed on
Friday morning amid a drop in Norwegian supplies, lower Russian
gas flows to Europe and persistent wider concerns about gas
supplies in the event of sanctions if Russia invades Ukraine.

The Dutch day-ahead contract was up by 1.60
euros at 93.30 euros per megawatt hours (MWh) by 1037 GMT, while
the February contract was 1.65 euros higher at
92.55 euros/MWh.

In the UK, the March contract was up by 6 pence
at 223 pence per therm and the day-ahead contract
rose 5.25 pence to 220 pence/therm.

Analysts at Refinitiv said curbed exports from Norway and
weaker sendout of liquefied natural gas would remain bullish
market drivers of the day-ahead market.

Total Norwegian exports have dropped due to an unplanned
outage at the Troll gas field, cutting supply by 36 million
cubic metres (mcm) per day.

Higher reverse flows on the Yamal-Europe pipeline from
Germany into Poland and lower Russian gas flows via Ukraine
might also support prices, Refinitiv said.

Meanwhile, the market continues to price in the effects of a
potential war between Russia and the Ukraine, which could result
in new sanctions against Russia from the EU and a potential
cancellation of the Nord Stream 2 project, analysts at Energi
Danmark said in a note.

"Nothing suggests that the market could not climb even
higher today," they added.

Bearish risk stemmed from a relatively warmer weather
outlook for next week that could weigh on prompt contracts,
Refinitiv gas analysts said.

"The next 10 days are seen similar among the models with
rather unsettled, windy and mild conditions prevailing in both
the UK and continental Europe," Refinitiv meteorologist Georg
Mueller said.

Higher wind output will reduce gas-for-power demand in both
Britain and Europe next week, Refinitiv data showed.

In the European carbon market, the benchmark 2022 price
inched down by 0.11 euro to 89.65 euros a tonne.
(Reporting by Nora Buli in Oslo, Editing by Susanna Twidale)