Prices slip despite lower Russian supplies

March 16 (Reuters) - British and Dutch gas prices eased from initial gains on Wednesday morning, even though Russian pipeline gas supplies to Europe fell for a second day, amid a bearish energy complex.

The British day-ahead gas price was 5.00 pence lower at 262.00 pence per therm by 1023 GMT, after trading higher earlier in the session. The April contract fell by 1.00 pence to 270 pence/therm.

In the Dutch gas market, the day-ahead contract was down 4.45 euros to 109.70 euros per megawatt hour (MWh).

The benchmark April TTF contract traded as high as 120.50 euros per megawatt hour on Wednesday morning, but slipped back to 112.00 euros/MWh, flat compared with Tuesday.

Russian piped gas supplies through Ukraine to Europe fell on Wednesday morning and flows on the Yamal-Europe pipeline to Germany were going eastwards for a second day as requests from shippers dropped.

"With Russian flows down again this morning, the downside potential for prices may be limited," analysts at Engie EnergyScan said in a morning report.

Norwegian exports to Britain are down on Wednesday due to maintenance of the Aasta Hansteen field.

Still, in the UK market, gas demand for Thursday is 18 million cubic metres (mcm) per day lower, offsetting some of the lower Norway flows, while send-out of liquefied natural gas (LNG) is firmer with several tankers arriving.

Meanwhile, Norway will boost its natural gas output in the coming months, keeping production higher than normal through the summer and delivering bigger volumes to Europe, producer Equinor said.

Coal prices also remained a key driver for gas, a trader said.

"Yesterday the big mover was coal and took gas down with it as target downside prices moved lower," he said.

Coal and gas compete as fuels for the power sector and Russia is a key supply source for both markets.

The front-month physical ARA coal contract for deliveries to European ports last traded at $323/tonne on Tuesday, down from $351/tonne on Monday.

Oil prices are also down again after falling below $100 per barrel for the first time in three weeks on Tuesday.

In the European carbon market, the benchmark contract was 0.43 euros lower at 77.00 euros a tonne.