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UK GAS-Prompt prices fall as strong LNG output leads to oversupply

Prompt British wholesale gas prices fell on Thursday morning as strong liquefied natural gas output led to oversupply.

* The within-day contract fell by 3.00 pence to 26.00 pence per therm by 0850 GMT

* Gas for weekend delivery fell by 2.50 p to 27.50 p/therm

* The gas system is oversupplied by 36 million cubic metres (mcm), with demand forecast at 262 mcm and flows at nearly 298 mcm/day, National Grid data shows

* Liquefied natural gas send-out is forecast strong at 100 mcm/day

* There are currently nine tankers scheduled to arrive in Britain up to Jan. 12

* Traders said the price movement was also because of a period of low liquidity due to the New Year holiday

* Gas-for-power demand is also not likely to be strong due to high wind power output

* Peak wind generation is forecast at 13.3 gigawatts (GW), out of a total metered capacity of 15 GW. This is forecast to fall slightly to 12.8 GW on Friday, according to Elexon data

* The day-ahead contract edged up by 0.10 p to 27.25 p/therm

* March delivery gas was up 1.30 p to 31.90 p/therm

* In the Dutch gas market, the day-ahead gas price at the TTF hub was up 0.38 euro at 11.98 euros per megawatt hour

* The benchmark Dec-20 EU carbon contract was down 0.22 euro at 24.42 euros a tonne
Source: Reuters (Reporting by Nina Chestney)

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