UK GAS-Prices rise amid improved demand outlook, supply concerns

LONDON, Sept 4 (Reuters) - British wholesale gas prices rose
on Friday morning, supported by an improved gas demand outlook
and supply concerns.

* The day-ahead contract was up 1.00 pence at
30.00
p/therm at 0926 GMT.

* The October contract rose by 0.70 p to 31.25
p/therm.

* Traders said the upward move was due to storage hedging
demand
in Europe, prompted by traders adjusting their consumption
portfolios as gas demand returns to normal levels after an
easing of coronavirus restrictions.

* Calls to German Chancellor Angela Merkel to reconsider the
Nord
Stream 2 pipeline, and a delay in the restart of Australia's
Gorgon liquefied natural gas (LNG) plant due to ongoing
maintenance works, also supported prices, traders added.

* The UK gas system was 4.3 million cubic metres (mcm)
oversupplied on Friday, however, with demand forecast at 145.1
mcm and supply at 149.4 mcm, National Grid data showed.

* Peak wind generation is expected to rise to 10.2 gigawatt
(GW)
on Saturday from 9.8 GW on Friday, Elexon data showed,
potentially reducing demand for gas in power generation.

* Wind speed is expected to fall on Monday, however.

* Gas supply to Britain was almost unchanged day on day on
Friday,
while UK Continental Shelf production is expected to rise next
week.

* On the Dutch market, the TTF day-ahead contract
rose 0.10 euro to 11.45 euros per megawatt hour (MWh), while the
October contract was up 0.34 euro at 12.18 euros/MWh.

* The benchmark Dec-20 EU carbon contract was down
0.05
euro at 28.69 euros per tonne.
(Reporting by Ekaterina Kravtsova; Editing by Mark Potter)