Gas prices rise as Gustav looms

LONDON (Reuters) - Gas prices rose on Friday on concerns over supplies from Norway and the possible impact on oil prices of a tropical storm in the Gulf of Mexico.

September gas contracts rose 2.50 pence to 58.50 pence per therm, while October rose 2.60 pence and Winter 08 gas rose 1.50 pence to 103 pence.

"Oil is up a bit and people are buying because they think this hurricane is going to wreak havoc but there is no real news out there," said one trader, adding that uncertainty over Norwegian gas exports in September was also supporting prices.

Some oil workers were evacuated from offshore platforms in the Gulf of Mexico as Tropical Storm Gustav hurtled towards the United States on Friday.

Forward gas contracts are closely tied to oil price movements in Britain and Europe.

Gas flows into Scotland and eastern England by pipelines from Norway fell early on Friday afternoon, leaving the UK supply network short of gas.

Traders said work at Norway's Sleipner gas field could reducing supplies to Britain, but Norwegian gas producer StatoilHydro STL.L declined to comment on its maintenance plans.

On the prompt market gas for delivery on Friday rose from an early low of 47.50 pence per therm to 57.50 pence as supplies got tighter, while Monday gas contracts firmed less markedly to 57.30 pence.

Baseload power for Monday traded at around 85 pounds per megawatt hour, with power supply margins looking tight for the start of next week, according to data from National Grid.