EUROPE GAS-Prices mixed on Russian flows, LNG supply and weather outlook

LONDON, Jan 6 (Reuters) - European and British wholesale gas
prices were mixed on Thursday morning, with some near-term
contracts up due to a cold snap and continued low supplies from
Russia but others down due to robust LNG supply and next week's
weather outlook.

The British gas contract for immediate delivery
was 15.00 pence higher at 230.00 pence per therm by 0914 GMT and
the Dutch day-ahead price was 4.10 euros higher at
94.10 euros per megawatt hour (MWh)

The Dutch front-month contract - the European
benchmark - was down by 1.40 euros at 95.10 euros/MWh.

A cold snap in north-west Europe and Britain could help to
support prices today but temperatures are forecast to increase
over the weekend and into next week, which will be bearish, some
traders said.

"LNG supply is still heavy for the next few days and the
cold snap should ease by next week," a trader added.

Gas-for-power demand in Britain is forecast to drop to 44
million cubic metres (mcm) a day from 60 mcm/day yesterday,
according to Refinitiv Eikon data, due to stronger wind output.

On the supply side, Norwegian flows to continental Europe
are higher than yesterday. Liquefied natural gas (LNG) supply
remains strong, with nearly 30 tankers scheduled for Britain,
Belgium and the Netherlands over the next couple of weeks.

The Yamal-Europe pipeline, which usually sends Russian gas
west into Europe, was still flowing east from Germany to Poland
for a 17th successive day, and flows rose sharply early on
Thursday, after a drop on Wednesday, data from German network
operator Gascade showed.

Eastbound volumes were at 7.5 million kilowatt hours per
hour (kWh/h), up from 1.7 million kWh/h on Wednesday evening and
just over 1 million overnight, data from the Mallnow metering
point on the German-Polish border showed.

"The additional capacity of 147GWh/d (6.125 million kWh/h)
was bought on daily auction yesterday in the reverse direction,
which supports the increase in flows," said Refinitiv gas
analysts.

Lower volumes on Wednesday sparked anticipation among some
in the market that flows could soon return westwards.

European gas prices have been rising on Yamal's reverse
flow, which has sparked concerns about winter supply in Europe,
and on political tensions.

In other markets, the European benchmark December 2022
emission allowance (EUA) contract dipped by 0.11 euro
to 87.47 euros a tonne.
(Reporting by Nina Chestney)