UPDATE 1-Poland's PGNiG to ask industry to curb gas usage

* Deliveries via Ukraine fall by another 7 mln cubic metres

* Reduction of deliveries to industrial clients on horizon

* Chemical companies warn of impact on profit, output

(Combines stories, adds quote, details, background)

By Patryk Wasilewski and Adrian Krajewski

WARSAW, Jan 6 (Reuters) - Poland's dominant gas distributor PGNiG PGNI.WA said on Tuesday it would ask industrial clients to limit gas usage as supplies via Ukraine were hit by the pricing dispute between Moscow and Kiev.

Deliveries through Ukraine fell by a further 7 million cubic metres on Tuesday, PGNiG said in a statement, forcing it to draw more gas from its storage facilities.

The conflict between Ukraine and Russia over gas prices escalated dramatically on Tuesday, with deliveries halted to the Balkans, Turkey and southeast Europe.

Bulgaria, Turkey, Macedonia, Greece and Croatia said flows of Russian gas via Ukraine had stopped, creating what Bulgaria called a "crisis situation" in the middle of winter. [ID:nL6410970].