EUROPE GAS-Prices rangebound as high renewables offset higher demand

LONDON, Aug 21 (Reuters) - Dutch and British wholesale gas prices traded in a narrow range on Thursday morning, as a slight drop in temperatures sending residential demand higher was balanced by higher renewable output.

The benchmark Dutch front-month contract at the TTF hub TRNLTTFMc1 was up 0.65 euro to 32.42 euros per megawatt hour, or $11.08 per mmBtu, at 0921 GMT, LSEG data showed.

The British front-month contract TRGBNBPMc1 traded up 1.32 pence at 80.33 pence per therm, while the day ahead price TRGBNBPD1 was up 0.10 pence at 80.30 pence per therm.

Fundamentals are balanced on the day ahead with increased local distribution zone (residential) demand mitigated by the expected decrease in (gas for) power demand due to stronger renewables, said Wayne Bryan, gas research principal at LSEG.

A slight drop in temperature forecasts has sent residential demand forecast up 51 gigawatt hours per day to 667GWh/d. Temperatures will remain below the 10- and 30-year normal from Thursday until at least Aug. 26, LSEG data showed.

Meanwhile gas for power demand is mainly softer on the day ahead, down 84 GWh/d, due to increased wind and solar production as well as rising French nuclear capacity.

Any extensions to current maintenance or new unplanned outages continue to pose upside price risks, especially with the scheduled ramp-up in Norwegian maintenance from Aug. 27, Bryan added.

Norway's Ormen Lange's corrective maintenance with an impact of 12 million cubic metres per day started on Monday and is expected to end on Sept. 12, LSEG data showed.

The lack of concrete progress in negotiations to reach a peace deal in Ukraine should continue to support energy markets, analysts at Engie's EnergyScan said in a morning note.

EU gas storage sites were last seen 74.49% full, Gas Infrastructure Europe data showed.

In the European carbon market, the benchmark contract CFI2Zc1 was up 0.60 euro at 71.89 euros per metric ton.