EUROPE GAS-Prices tumble on improved Norwegian flows, strong LNG supply

Jan 19 (Reuters) - British and Dutch gas prices fell on
Wednesday morning, weighed down by improving flows of Norwegian
gas, strong supply of liquefied natural gas (LNG) and mild
weather forecasts.

The British contract for day-ahead delivery was
down by 13.50 pence to 176.50 pence per therm, while the March
contract was down 20 pence at 180.00 pence per
therm by 1007 GMT.

The Dutch contract for February delivery fell
by 7.5 euros to 72.50 euros per megawatt hour (MWh).

"We expect falling prices today, as the weather forecasts
for Northern and Central Europe are mild, while the supply
picture is improving amid high LNG imports," analysts at Energi
Danmark said in a morning note.

Send-out of LNG from European terminals in the UK, the
Netherlands, Belgium, France, Italy and the Iberian Peninsula
has averaged 3,880 gigawatt hours per day in January, the
highest monthly average since 2017, Refinitiv Eikon data showed.

"Temperatures will be close to seasonable values but will
start to increase on Sunday," Refinitiv meteorologist Georg
Mueller said.

"The week after next week could bring a change to a westerly
flow weather pattern with unsettled, windy and mild weather but
it is too early for details," he added.

A rebound in Norwegian supply could also exert downward
pressure, analysts at Engie EnergyScan said in a note.

Total Norwegian exports were nominated 57 million cubic
metres (mcm) per day higher on Wednesday amid lower
maintenance-related outages, Refinitiv analysts said.

The British system was over-supplied on Wednesday, with
demand of 312 million cubic metres (mcm) and supply of 318.0
mcm, National Grid data showed.

Meanwhile, flows of Russian gas remain low, with the Polish
section of the Yamal-Europe pipeline still in reverse and muted
flows through Ukraine.

In other markets, the European benchmark December 2022
emissions contract was down by 1.44 euro at 81.23 euros a tonne.
(Reporting by Nora Buli in Oslo, Editing by Susanna Twidale)