UK GAS-Prices ease on milder weather, improving supply

Jan 26 (Reuters) - British wholesale gas prices fell on
Tuesday morning with temperatures rising to above average levels
and an expected rise in Norwegian gas supplies.

* The day-ahead contract was down 1.00 pence at
56.00
p/therm by 0930 GMT, extending the previous day's 6% drop.

* The February contract was down 1.00 pence at
55.80
p/therm.

* Temperatures in Britain and northwest Europe will rise to
above
the seasonal norm from Wednesday and for the rest of the week,
curbing heating demand, analysts at Refinitiv said in a morning
report.

* Norwegian gas exports were also rising as unplanned
outages
ended or would end by tomorrow, they added.

* The system was marginally over-supplied on Tuesday
morning, with
demand forecast at 363.3 million cubic metres (mcm) and supply
of 365.3 mcm/day, National Grid data showed.

* Peak wind generation is forecast at 6.2 gigawatts (GW) on
Tuesday and 5 GW on Wednesday, out of total metered capacity of
around 18 GW, Elexon data showed.

* The February price at the Dutch TTF hub was
down
0.30 euro at 19.95 euros per megawatt hour after falling more
than 6% on Monday.

* Weather forecasts for next week also remained on the
higher
side, with previously anticipated very cold weather not
materialising so far, a trader said.

* Falling gas demand in China should also see more liquefied
natural gas (LNG) arrive in Europe after some tight weeks,
analysts at Energi Danmark said in a note.

* Lower Asian prices had closed the arbitrage window for
Atlantic
LNG cargoes being shipped to northeast Asia, leaving Europe as
the most attractive destination, Refinitiv analyst said in a
weekly report.

* The benchmark Dec-21 EU carbon contract was 0.21
euro
higher at 33.37 euros a tonne.
(Reporting by Nora Buli; editing by Nina Chestney)