UK GAS-Prices rebound in volatile market

Aug 20 (Reuters) - British and European gas prices rebounded
on Friday morning after posting heavy losses the previous day,
as volatility remained high due to uncertainty over future
Russian gas supplies.

* UK gas for immediate delivery was rose by
3.75
pence to 103.00 pence per therm by 0845 GMT.

* Day-ahead gas was 2.55 pence up at 102.75
p/therm.

* At the Dutch TTF hub, the day-ahead contract
gained
1.12 euro to 41.50 euros per megawatt hour (MWh), and the
September price was 0.45 euro higher at 41.45
euros/MWh

* A bounce-back was to be expected but it was hard to say
where
prices are headed after recent losses left market participants
nervous amid increased volatility, traders said.

* The market fell over 10% on Thursday following comments
from
Gazprom that it would deliver 5.6 billion cubic metres of
Russian gas through the pipeline this year.

* The startup of Nord Stream 2 is eagerly anticipated after
record
high prices have been sustained due to very low storage levels,
low LNG supply and Russia holding off booking much additional
capacity at auctions.

* Russian President Vladimir Putin and German Chancellor
Angela
Merkel are due to meet in Moscow on Friday and most likely will
discuss the pipeline.

* Nord Stream 2 might start up in late October or early
November,
but issues around certification in Germany could delay this
process, Refinitiv analyst Xun Peng said in a note.

* "Although TTF gas prices may have overshot, given the
current
state of inventories, it is also unlikely that a substantial
downward correction will occur in the short term," senior energy
economist Hans van Cleef at ABN Amro said in a note.

* From a fundamental perspective, the UK gas system was 8
million
cubic metres (mcm) over-supplied on Friday morning, National
Grid data showed.

* However, flows of Norwegian gas were down amid ongoing
maintenance.

* The benchmark Dec-21 EU carbon contract was up
by 0.95
euro at 54.45 euros a tonne.

* The benchmark Dec-21 British carbon contract was
slow
to trade.
(Reporting by Nora Buli in OSLO; editing by Nina Chestney)