By Scott DiSavino

April 29 (Reuters) - U.S. natural gas futures edged up about 1% to two-week high on Monday as a bullish drop in daily output offset bearish forecasts for lower demand next week than previously expected.

On its first day as the front-month, gas futures NGc1 for June delivery on the New York Mercantile Exchange rose 1.6 cents, or 0.5%, from where the June future settled on Monday to $3.359 per million British thermal units, putting the contract on track for its highest close since April 11.

That put the front-month up about 5% from where the lower-priced May contract closed on Monday when it was still the front-month.

Analysts project the amount of gas in storage will rise above the five-year normal for this time of year over the next week or two. Gas stockpiles have remained below normal levels since mid January.

Inventories were currently about 1% below normal after utilities pulled a record 1.013 bcf of gas from storage in January to keep homes and businesses warm during extreme cold. Some analysts said mild weather and record output could allow energy firms to add record amounts of gas into storage in May, breaking the current all-time monthly injection high of 494 bcf in May 2015. EIA/GAS NGAS/POLL

SUPPLY AND DEMAND

Financial firm LSEG said average gas output in the Lower 48 U.S. states rose to 106.4 billion cubic feet per day in April from a monthly record of 106.2 bcfd in March.

On a daily basis, gas output fell about 1.0 bcfd over the past two days to a preliminary two-month low of 104.9 bcfd on Tuesday. Analysts have noted that preliminary data is often revised later in the day.

Meteorologists projected temperatures in the Lower 48 states would remain mostly warmer through May 14.

LSEG forecast average gas demand in the Lower 48, including exports, will slide from 99.0 bcfd this week to 96.6 bcfd next week. The forecast for next week was lower than LSEG's outlook on Monday.

The average amount of gas flowing to the eight big liquefied natural gas $(LNG)$ export plants operating in the U.S. climbed from a monthly record of 15.8 bcfd in March to 16.0 bcfd so far in April on rising flows to Venture Global's VG.N 3.2-bcfd Plaquemines export plant under construction in Louisiana.

In LNG news, Australia's Woodside Energy WDS.AX made a final investment decision to build the first 2.2-bcfd phase of its proposed 3.6-bcfd Louisiana LNG export plant in Louisiana. The company expects to produce first LNG from the roughly $17.5 billion project in 2029.

The U.S. became the world's biggest LNG supplier in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more exports, due in part to supply disruptions and sanctions linked to Russia's 2022 invasion of Ukraine.

Gas was trading at a nine-month low of around $11 per mmBtu at the Dutch Title Transfer Facility (TTF) TRNLTTFMc1 benchmark in Europe and near an 11-month low of around $11 at the Japan Korea Marker (JKM) JKMc1 benchmark in Asia. NG/EU

(Reporting by Scott DiSavino, Editing by Nick Zieminski)

((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))

For gas data on the LSEG terminal type ENERGY in the search bar and then go to the GAS drop down and the NORTH AMERICA drop down.

For Interactive Map, type 'Interactive Map' in the box at upper left of the LSEG terminal

For graphics on Baker Hughes rig counts, see: http://graphics.thomsonreuters.com/15/rigcount/index.html

For next-day SNL U.S. gas prices, see: 0#SNL-NG

For next-day SNL U.S. power prices, see: 0#SNL-PWR

For U.S. natgas price and storage polls, see: NGAS/POLL

For U.S. nuclear power outages, see: NUKE/

For U.S. Northwest hydro power report, see: NWRFC

For U.S./Canada natural gas rig count vs Henry Hub futures price, see: http://tmsnrt.rs/2eT9k44

For the U.S. natural gas speed guide, see: USGAS

For the U.S. power speed guide, see: USPOWER

To determine CFTC managed money net position add (NYMEX Henry Hub options and futures combined 3023651MNET) plus (ICE Henry Hub options and futures combined 3023391MNET divided by four) plus (NYMEX Henry Hub swaps options and futures combined 303565BMNET divided by four) plus (NYMEX Henry Hub penultimate gas swaps 303565CMNET divided by four)

NYMEX Henry Hub options and futures combined 0#3CFTC023651

NYMEX Henry Hub futures only 0#1CFTC023651

ICE Henry Hub options and futures combined 0#3CFTC023391

NYMEX Henry Hub swaps options and futures combined 0#3CFTC03565B

NYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C