NORDIC POWER-Forward prices rise on tight water reserves, higher European gas rates

March 12 (Reuters) - Nordic forward power prices rose on Thursday, driven by lower water reserves in the hydropower-dependent region, while strong European gas prices also provided support.

Nordic front-quarter baseload power contract ENOFBLQc1 rose 3.5 euros, or 6.8%, to 54.7 euros per megawatt hour (MWh) at 1103 GMT.

Nordic front-year power contract ENOFBLYc1 gained 0.55 euros, or 1.3%, to 44.65 euros per megawatt hour (MWh).

"The main driver is a drier weather outlook, which reduces expected inflows and tightens the hydro balance," said Lukas Sigg, CEO of Nordic Energy Consulting, adding that higher gas prices are further supporting the Nordic power market.

Nordic water reserves available 15 days ahead PCAEC00 declined to 26.26 terawatt hours (TWh) below normal from 21.69 terawatt hours (TWh) below normal on Wednesday.

"Next week is less active with near or even slightly below normal precipitation, accompanied by still mostly mild temperatures," said LSEG meteorologist Georg Mueller.

Meanwhile, British and Dutch wholesale gas prices rose on Thursday morning as reports of tanker attacks in the Gulf heightened fears of prolonged disruption to liquefied natural gas supplies from the region, while higher oil prices added further support. NG/EU

Power prices for Germany's year-ahead contract TRDEBYc1, Europe's benchmark, rose 0.9 euros, or 1%, to 93.15 euros per MWh.

In the European carbon market CFI2Zc1, the benchmark contract rose 0.23 euros, or 0.32%, to 72.09 euros a ton.

Meanwhile, the Nordic power price for next-day physical delivery FXSYSAL=NPX, or system price, was down 30.25 euros, or 50.4%, to 29.79 euros per megawatt hour (MWh).