UK GAS-Gas prices ease on lower demand, higher Norway flows

Dec 16 (Reuters) - British wholesale gas prices eased off
their up to two-year highs on Wednesday, triggered by surging
prices for liquefied natural gas (LNG) and emissions, with
bearish fundamentals finding a stronger foothold.

* The day-ahead contract was down 0.15 pence at
45.35
p/therm by 0940 GMT, and further off its highest point since
Feb. 2019 of 47.50 p/therm hit on Tuesday.

* "Recent wind speeds have been high in the UK and
has
reduced the call on gas while the uptick in temperatures and
subsequent fall in consumption was also a factor,"
analysts at Refinitiv said in a note.

* The UK gas system was over-supplied by 10.5 million cubic
metres
(mcm) on Wednesday, with demand forecast at 255.4 mcm, more than
53 mcm below the seasonal norm, National Grid data showed.

* Flows of Norwegian gas to Britain were up 11 mcm day on
day at
120 mcm/day after maintenance ended at the flexible Oseberg gas
field.

* Although temperatures in Britain should drop to 7.2
degrees
celsius on Thursday from 8.2C today, this was still above the
seasonal average, Refinitiv said.

* Peak wind generation is forecast at 14.4 gigawatts (GW) on
Wednesday, and 13.6 GW on Thursday, out of total metered
capacity of around 18 GW, Elexon data shows.

* Refinitiv data pegged local distribution zone (LDZ)
demand,
which mostly reflects heating, at 195 mcm/day for Thursday, down
4 mcm from previous forecasts, while demand for power was 6 mcm
higher at 47 mcm/day.

* "Falling demand as we enter the festive season and the
impact of
the latest government restrictions on London can also have a
bearish impact on the curve," Refinitiv's analysts said.

* The contract for NBP January gas deliveries
shed
0.75 pence to 48.80 p/therm.

* The Dutch TTF January contract was also down
0.21
euros at 16.94 euros per megawatt hour.

* The new benchmark Dec-21 EU carbon contract was
down
0.12 euros at 32.06 euros per tonne.
(Reporting by Nora Buli
Editing by Peter Graff)