Page 13 - EurOil Week 47 2021

EurOil PERFORMANCE EurOil

Norwegian oil, gas output climbs

in October

NORWAY NORWEGIAN oil and gas supply grew in Octo- surpassed the forecast by 1.5%.
ber both month on month and year on year, State-owned producer Equinor secured
Norwegian output is up amid further growth at the Johan Sverdrup field approval to pump an extra 2bn cubic metres of
2% from the level in the and recovering prices. gas annually from the Troll and Oseberg fields
previous month and up Oil and other liquids production averaged starting this gas year, which began in October.
12.4% year on year. 2.062mn barrels per day (bpd) during the month, The company has also been given permission to
up 2% from the level in the previous month and pump more gas from the Heidrun field, the NPD
12.4% y/y, according to the Norwegian Petro- was quoted as saying by Reuters on November
leum Directorate (NPD). Since its launch in 18. It has also decided to increase gas exports
autumn 2019, Sverdrup has been a driving force from the Gina Krog, using supplies that would
behind output growth in Norway. It is currently otherwise have been reinjected into reservoirs to
flowing at a rate of over 500,000 bpd, and has a boost oil recovery.
full, first-phase capacity of 535,000 bpd. “Estimates show that a very small part of oil
Despite the growth, liquids output came in production [at Gina Krog] is affected ... If gas
1.1% below the level that was forecast. prices fall sharply, the increased gas exports will
Meanwhile, Norwegian gas deliveries aver- stop,” the NPD told the news agency. The direc-
aged 336.4mn cubic metres per day in Octo- torate estimates that around a quarter of total gas
ber, marking a 13.3% increase from the level produced off Norway is reinjected under the sea
in the previous month and 16.2% higher y/y. It bed.™

European gas prices see further growth

EUROPE WHOLESALE gas prices in Europe rose for the much gas-to-coal switching takes place on the
seventh day in a row on November 18, as a mul- market.
Germany's regulator has titude of factors have made the market tighter. Nord Stream 2’s certification will no longer
halted the certification The December gas delivery contract rose be complete until April next year at the earliest,
of Nord Stream 2. from €70.1 per MWh on November 10 to €75.7/ and it could well drag on into the late summer,
MWh on November 12 and then €79.95/MWh depending on how long the European Commis-
on November 15. It then soared to €94.2/MWh sion takes to make its recommendation to Ger-
on November 16, and was trading at €95.4/MWh many’s regulator.
as of 16:20 GMT on November 18. “Delays in utilising Nord Stream 2 may
The sharp growth in recent days came after have a lasting effect through the region’s 2021
Germany’s energy regulator announced it had winter and beyond,” analysts at Rystad Energy
halted the certification process for the Nord warned in a note on November 17. “Europe may
Stream 2 pipeline. It has said it will only resume be forced to continue being dependent on an
the process once the pipeline’s Swiss-based oper- already tight liquefied natural gas [LNG] mar-
ator has established a German subsidiary. ket, which suggests an increased likelihood of a
The regulator’s announcement dashed expec- sustained high price environment throughout
tations of any supply relief through the pipeline much of next year’s first half if Europe emerges
arriving in Europe this winter. It follows a drop with severely depleted storage.”
in temperatures in the northern hemisphere, Russian flows to Europe through Ukraine
and data on November 17 showed that gas stor- and Poland have increased only marginally
age levels in Europe were 2.5% lower than in recently, despite Gazprom’s announcement that
the previous week. Another bullish factor has it would be sending gas for storage in Europe ear-
been higher carbon prices, which may limit how lier this month. ™

Week 47 25•November•2021 www. NEWSBASE .com P13