EUROPE GAS-Prices rise as Nord Stream pipeline damage raises concerns

LONDON, Sept 27 (Reuters) - Dutch and British gas prices rose on Tuesday morning as news that the Nord Stream gas pipeline from Russia to Europe had suffered damage, raising concerns over the security of the bloc’s energy infrastructure and making a swift resumption in flows through the pipeline even less likely.

The Dutch October gas price was up 11.00 euros at 184.50 euros per megawatt hour (MWh) by 0907 GMT.

The Dutch November gas price rose by 13.85 euros to 203.10 euros/MWh, while the equivalent British November gas price was up 24.00 pence at 408.00 pence per therm

Nord Stream AG, the operator of the network, said the Nord Stream gas pipeline system on the bed of the Baltic Sea sustained "unprecedented" damage and it was impossible to estimate when the system's would be restored.

Confirmation of the damage also came after a leak on the nearby Nord Stream 2 pipeline was discovered that prompted Denmark to restrict shipping in a five nautical mile radius.

Although neither pipeline is currently supplying gas to Europe, the incidents have raised concerns about the safety of the bloc’s gas infrastructure.

“Gas leaks at both Nord Stream 1 and Nord Stream 2 in three separate locations does not sound like a coincidence,” Tom Marzec-Manser Head of Gas Analytics at ICIS said in an email.

“The timing of this development in relation to the start of the gas winter, on 1 October, as well as the commissioning of the brand-new Baltic Pipe - that will supply Norwegian gas to Poland and crosses over the Russian lines - all create further tension in the market," Marzec-Manser said.

The damage to the Russian pipelines came as The Baltic Pipe, with an annual capacity of 10 billion cubic metres per day, is due to be inaugurated later on Tuesday.

Eastbound gas flows via the Yamal-Europe pipeline to Poland from Germany jumped on Tuesday, while flows of gas from Russia to Europe via Ukraine remained steady.

In the European carbon market, the benchmark contract was down by 2.31 euros at 68.02 euros a tonne.

(Reporting By Susanna Twidale; editing by Nina Chestney)