Page 11 - EurOil Week 12 2022

EurOil PERFORMANCE EurOil

Norwegian gas supply exceeds

forecast in February

NORWAY NORWEGIAN gas production exceeded the supplier of energy to the markets in Europe in
forecast in February, the Norwegian Petroleum a highly challenging situation,” Equinor’s exec-
Norwegian gas Directorate reported on March 18, while oil utive vice president for exploration and produc-
suppliers have had extraction came in below the forecast. tion, Kjetil Hove, said in a statement. “In close
extra incentive to pump Norwegian gas supply averaged 347.8mn dialogue with the authorities and our partners
their supplies to Europe cubic metres (mcm) during the month, which we are now taking steps to maintain the high
in recent months. was 9.3% higher than the forecast, 8.3% higher production level from the winter.”
than the amount in February last year and 1.3% Russia has signalled it may cut off some
higher than the level during January this year. gas supply including via the Nord Stream 1
There were fewer days in February than in Jan- pipeline in response to the West’s escalating
uary, however, and total gas sales were down 0.9 sanctions regime against Moscow, imposed
bcm month on month at 9.7 bcm. in response to its actions in Ukraine. The EU
Norwegian gas suppliers have had added and the UK are looking to drastically cut their
incentive to pump more gas to Europe in recent Russian gas imports anyway, and the Euro-
months as a result of soaring hub prices. Equinor pean Commission has called for EU gas stor-
and many of Norway’s biggest gas producers sell age operators to have their facilities 90% full by
their product mostly on spot markets rather than October 1, to safeguard energy security during
under long-term oil-indexed contracts, which the 2022-23 winter.
means they are well positioned to benefit from By adjusting production permits at Oseberg,
the market’s current volatility. the field will be able to flow an extra 1 bcm of gas
Moving forward, Norwegian gas supply is over the summer until September 30, according
likely to continue exceeding expectations, as to Equinor. Heidrun exports meanwhile could
Equinor announced on March 16 that it would be raised by 400 mcm during 2022. Norwegian
work with its partners and Norwegian author- authorities have also approved Equinor’s appli-
ities to ramp up flow at the Troll, Oseberg and cation to ramp up gas supply at Troll to 38 bcm
Heidrun fields in the North Sea through the during the current gas year.
summer to offset a potential drop in Russian Meanwhile, Norwegian oil and other liquids
deliveries. production came in at 1.98mn bpd in February,
“Our focus is to maintain safe and efficient which was 7% below the forecast and down 5.8%
operations on our facilities, remaining a reliable year on year, but up 0.8% month on month. ™

Week 12 24•March•2022 www. NEWSBASE .com P11