EUROPE GAS-European gas prices rise on continued LNG supply fears, oil gains

By Susanna Twidale

LONDON, March 16 (Reuters) - Benchmark British and Dutch wholesale gas prices rose on Monday morning as the U.S.-Iran conflict continued to disrupt liquefied natural gas exports from the region, while higher oil prices also added further support.

The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was up 1.82 euros at 51.94 euros per megawatt hour (MWh) or around $17.44 /mmBtu, by 0902 GMT, ICE data showed.

The British April contract NGLNMc1 was up 4.05 pence at 132 pence per therm, ICE data showed.

Around a fifth of the world's LNG typically transits through the Strait of Hormuz but shipping through the narrow passage has come to a near-standstill since the U.S. and Israel began strikes on Iran on February 28.

"The market is getting increasingly concerned that the war in the Middle East could last long. 20-25% of all global LNG supply has been cut off due to the closure of the Strait of Hormuz and this has a huge impact on the European gas market," analysts at Mind Energy said in a daily research note.

U.S. President Donald Trump said on Sunday his administration is talking to seven countries about securing the Strait of Hormuz and protecting ships. He had previously said the U.S. Navy would "soon" escort oil tankers through the waterway but is yet to set out a plan.

The front-month TTF price is up around 60% since the conflict began.

"Faced with so much uncertainty, (Dutch) TTF prices seem to have found an equilibrium, at high levels," analysts at Engie EnergyScan said.

Monday's more than 2% rise in crude oil prices, to over $105 a barrel, was also bullish for gas prices because many LNG and pipeline gas contracts are indexed to oil prices.

In the European carbon market, the benchmark contract CFI2Zc1 was up 0.31 euro at 69.43 euros a metric ton.