UK GAS-Prices ease ahead of Russian gas transit auction

April 27 (Reuters) - British and Dutch wholesale gas prices
fell on Tuesday as the market awaited the outcome of an auction
for additional transit capacity through Ukraine, which could
increase Russian gas supplies.

* The British day-ahead contract was down 0.75
pence
at 54.25 pence per therm by 0825 GMT.

* The Dutch TTF day-ahead contract inched down
by 0.02
euros at 20.15 euros per megawatt hours.

* The TTF May gas price was 0.15 euro lower at
19.88
euros per megawatt hour.

* The market was trading on expectations of additional
capacity
through Ukraine, said a trader.

* The outcome could see sharp price moves in either
direction and
impact all contracts from the day-ahead and further out, but
mostly the rest of the summer, he added.

* The Ukrainian transmission system operator will offer 63.7
million cubic metres (mcm) per day, or around 669 gigawatt hours
(GWh) per day, of interruptible capacity for May at Sudzha on
the Russian-Ukrainian border, after all firm capacity for May
has been booked, Refinitiv gas analysts said.

* On the fundamentals side, UK local distribution zone (LDZ)
consumption for Wednesday is forecast 13 mcm/d up amid colder
temperatures for the second half of the week, the analysts said.

* However, higher wind will lower gas-for-power demand by 6
mcm/d,
they added.

* Peak wind generation is forecast at 6.3 gigawatts (GW) on
Tuesday and 7.2 GW on Wednesday, out of a total metered capacity
of around 18 GW, National Grid data showed.

* The system was over-supplied by around 8 mcm, with supply
forecast at 218 mcm and flows at 226 mcm/day, National Grid data
showed.

* Refinitiv analysts said strong withdrawals from storage
offset
lower pipeline supplies from Norway and domestic UK production.

* The benchmark Dec-21 EU carbon contract was 0.40
euro
down at 46.80 euros a tonne.
(Reporting by Nora Buli in OSLO; editing by Nina Chestney)