EUROPE GAS-Prices fall as wind and LNG supply offset lower Norway flows

Aug 28 (Reuters) - Dutch and British wholesale gas prices traded lower early on Thursday as wind power generation curbed gas-for-power demand and increased liquefied natural gas arrivals offset reduced supplies from Norway.

The benchmark Dutch front-month contract at the TTF hub TRNLTTFMc1 was down 1.32 euros at 31.23 euros per megawatt hour, or $10.63/mmBtu, by 0742 GMT, LSEG data showed. That was the lowest price in a week.

The British front-month gas price TRGBNBPMc1 was down 2.55 pence at 78.21 pence per therm, while the within-day contract TRGBNBPWKD dropped by 2.65 pence to 78.35 p/therm.

Imports of liquefied natural gas have increased in parts of the European Union this week, notably in Germany and Italy, Daniel Hynes, senior commodity strategist at ANZ, said in a note, citing ship tracking data.

"This will help offset Norwegian flows, which are dipping due to seasonal maintenance," he added.

Wind generation in much of Northwest Europe is also set to increase, easing demand for gas, Hynes said.

Non-local distribution zone gas demand in Northwest Europe, which consists of power stations and large industries, is forecast to drop from 2,206 gigawatt hours/day on Thursday to 1,692/GWh on Friday, LSEG data showed.

"The European market seems to be very comfortable with the current situation with looser storage targets and ample LNG supply, despite Norwegian maintenance ramping up," LSEG analyst Saku Jussila said.

Nominations for Norwegian gas flows to Europe dropped from 281 million cubic metres per day on Wednesday to 273 mcm/day on Thursday, data from infrastructure operator Gassco showed.

EU gas storage sites were last 76.4% full, compared with around 92% at the same time last year, Gas Infrastructure Europe data showed.

In the European carbon market, the benchmark contract CFI2Zc1 was down 0.35 euro at 71.89 euros a metric ton.