EUROPE GAS-Prices little changed amid milder weather

March 8 - Dutch and British wholesale gas were little changed on Friday morning amid milder weather and full storage.

The benchmark Dutch TTF front-month contract was up 0.16 euros at 26.33 euros per megawatt hour (MWh) by 1004 GMT, LSEG data showed.

The day ahead contract was up 0.75 euros at 26.35 euros/MWh.

In Britain, the front-month contract eased by 0.30 pence to 65.00 pence per therm. The day-ahead contract rose by 1.25 p to 68.25 p/therm.

High European gas storage levels, mild weather forecasts both for the prompt and longer-term contracts, as well as steady Norwegian gas flows could be moving prices lower, a trader said.

However, lingering concerns over the impact of U.S. sanction on Russian coal lifting prices for the fuel and technical support levels could offer some support, he added.

Last month, coal producer SUEK was added to a U.S. sanctions list on Russia. These sanctions could tighten the market for non-Russian coal by creating additional challenges for international trade in Russian coal, thereby increasing demand for coal from other origins, said Toby Hassall, coal analyst at LSEG.

LSEG gas analysts said they expected prices to ease next week, with day-ahead prices to trade in a range of 23-25 euros/MWh for the TTF and 60-65p/therm for the British contract.

"We still think that TTF near-curve prices will slip further from current levels, although the downside potential is increasingly limited given gas' already high share of thermal generation," consultancy Energy Aspects said in a gas report.

The analysts saw a risk that European gas prices will gain some support from firming coal-to-gas fuel switch prices over the coming months.

The two fuels compete in the power sector and are closely correlated.

At the same time, Europe would likely struggle to absorb gas supplies at its underground storage sites, which are still unusually full following a mild winter, Energy Aspects said.

Once storage is filled, additional supply could be stored as floating liquefied natural gas (LNG), Energy Aspects said.

Europe's gas stores are currently 61.3% full, latest data from Gas Infrastructure Europe showed.

Germany could start refilling gas storage caverns from mid-March already, the country's operators group INES said on Thursday.

In the European carbon market, the benchmark contract firmed 0.13 euros to 59.29 euros a metric ton. (Reporting by Nora Buli in Oslo; editing by Nina Chestney)