The July contract continued its decline and fell by 0.23 pence to 24.25 pence per therm in the morning, extending losses from a 10-year low it hit the previous day.

It traded at 24.75 p/therm by 1145 GMT.

Two more contracts hit a two-year low. The weekend price dropped 4.9% to 24.25 p/therm and the working days of next week declined 6.7% to 24.95 p/therm.

Britain's day-ahead gas price fell by 0.20 pence to 25.00 pence per therm, nearing its lowest since September 2016.

Within-day gas price dropped by 0.35 pence to 24.90 p per therm.

"The move is related to Troll (gas field) coming back next week. High levels at gas storages are also driving this," said a British gas trader.

On Wednesday, Britain's total imports from Norway are expected at 74 million cubic metres (mcm), just 2 mcm short of Tuesday's levels.

As a result, the system was only slightly undersupplied by 5.2 mcm. Demand was expected at 183.0 mcm and supply at 177.8 mcm per day, National Grid data showed.

Norwegian flows to Britain are expected to increase next week due to the end of maintenance at the Troll gas field.

Dutch prices have also been down lately, hitting lows of their own. The month ahead price in the Netherlands hit a 10-year low last week, while the prompt prices fell to their lowest in 9-1/2 years in the end of May.,,

The gas trader added that higher than average temperatures this week were not yet affecting prices much on Wednesday but they may have a stronger effect entering into the summer and depending on the filling rate of gas storages.

Average daily temperatures in Britain are forecast to reach 16.0 degrees Celsius on Wednesday and are seen falling to 15.3C on Thursday.

Low gas-to-power demand and high gas storage levels led the price drop, Refinitiv analyst Marina Tsygankova said.

"?ominations and our model indicate (a) small reduction in gas for power demand today, which is more than offset by 9 mcm per day (mcm/d) of injections nominations compared to 3 mcm/d of withdrawals yesterday," she said.

The steady decline of British wholesale gas prices shows no sign of reversing this summer, which should provide some relief to households when it is reflected in a lower price cap on energy tariffs this autumn.

Day-ahead gas price at the Dutch TTF hub up by 0.02 euro at 9.15 euros per megawatt hour (MWh).

Benchmark Dec-19 EU carbon contract was up by 0.79 euro at 27.20 euros per tonne.