UK GAS-Within day price falls as high wind power reduces gas demand

British wholesale gas for immediate delivery fell on Monday as low demand, in part due to high wind power generation, pushed the system into oversupply.

* Within day gas fell 1.0 pence to 28 pence other therm by 0740 GMT.

* Day-ahead gas was 0.2 pence higher at 29.00 pence per therm.

* The system was oversupplied by 24.3 million cubic metres (mcm) with demand forecast at 132.0 mcm and supply seen at 156.3 mcm, National Grid data showed.

* Peak wind generation is expected at 10.3 gigawatts out of a total metres capacity of 12 GW, an unusually high rate.

* High wind power tends to reduce gas-for-power demand, the forecast for which was cut by 11 mcm to 52 mcm for Monday.

* The gas system was oversupplied even though flows along the Langeled pipeline from Norway were down 10 mcm to 24 mcm.

* Gas analysts at Refinitiv said they did not see a clear reason for the drop in production in Norway from outage data, which indicates out put has been cut for commercial reasons.

* A week of warm temperatures adds to the bearish picture. The average temperature forecast for the country was raised by 3.4 degrees Celsius to 20.1 degrees for Monday.

* Further out, however, there are signs that the gas market will tighten.

* Sendout from liquefied natural gas (LNG) terminals has stayed persistently low since the start of the month with fewer LNG tanker arrivals.

* On Monday, the sendout rate is expected to be 10 mcm compared to rates consistently between 30 and 90 mcm between October of last year and May of this year.

* A raft of planned maintenance starting next week in Britain is expected to reduce gas supplies by 43 mcm a day.

* In the Dutch gas market, the front-month contract edged up by 0.05 euro to 10.68 euros per megawatt hour.

* Benchmark Dec-19 EU carbon contract was 0.27 euro higher at 29.16 euros a tonne, getting close to an 11-year high of 29.50 euros a tonne.
Source: Reuters (Reporting by Sabina Zawadzki Editing by Edmund Blair)