UK GAS-Prices fall on increased supply, strong wind output

March 12 (Reuters) - British wholesale gas prices fell on
Friday morning as Norwegian and liquefied natural gas supply
increased and wind power output remained strong.

* The weekend contract was 0.50 pence lower at
45.75
pence per therm by 0945 GMT.

* The April contract was down by 0.73 pence at
45.65
p/therm.

* The system was over-supplied by around 17 million cubic
metres
(mcm), with demand forecast at 260 mcm and flows at 277 mcm/day,
National Grid data showed.

* Norwegian flows and liquefied natural gas send-out are up
and
wind output remains high, accounting for 41% of UK power
generation, gas analysts at Refinitiv said.

* Peak wind generation is forecast at 14.7 gigawatts (GW) on
Friday and 14 GW the next day, out of total metered capacity of
around 18 GW, National Grid data showed.

* Strong wind output typically reduces demand for gas from
power
plants.

* Temperatures are forecast to fall below the seasonal norm
from
the start of next week and a tigher system is forecast.

* In the Dutch gas market, the April price at the TTF hub
edged down by 0.06 euro to 18.00 euros per megawatt
hour.

* Analysts at Energy Aspects said the TTF summer curve is
pricing
in likely low Russian flows via Ukraine.

* "There may still be some price upside given that Europe
will
likely end October with a lower storage carry-out than in recent
years," they said.

* Flows of 110–125 mcm/d through Ukraine imply Gazprom will
lose
market share to European LNG imports this year.

* The firm may only provide around 28% of Europe’s 2021
supply
while it has previously pledged to maintain a market share of
around 35% in Europe," they added.

* The benchmark EU carbon price was 0.22 euro
lower at
41.71 euros a tonne.
(Reporting by Nina Chestney)

National Grid