Norway to increase EU gas exports by 9% this year

Norway’s natural gas exports to the European Union (EU) will increase by around 100 TWh (or 9%) in 2022 compared to 2021 levels, as production nears full capacity, the European Commission and Norway said in a joint statement yesterday. Norway, which is not a member of the 27-member bloc, has agreed to work more closely to ensure the Nordic country continues to provide robust gas flows to the region, in line with Europe’s efforts to reduce its dependence on energy imports from Russia, Montel-Foreks reported. “The EU supports Norway’s ongoing exploration and investment to bring oil and gas to the European market,” the statement said after talks between Norwegian Energy Minister Terje Aasland and European Commission Vice President Frans Timmermans in Brussels. The meeting came on the same day that Germany raised its gas crisis level to “alert” due to a sharp decline in flows via the Nord Stream pipeline from Russia. Timmermans said the risk of Russia completely cutting off gas supplies to the EU was more real than ever. The crisis has increased Norway’s importance as a major gas supplier to the EU. According to the statement, oil and gas producers on the Norwegian side have increased their gas production to a level that would probably increase production by 100 TWh this year, compared with 1,112 TWh (113 billion cubic metres) in 2021. However, with capacity currently running at close to 100% and any new developments in production or infrastructure taking years, the country is unlikely to increase exports further in the short term. July gas prices at the Dutch TTF hub reached a one-week high of €138.38/MWh on Thursday, well above the price level of around €30.00/MWh a year ago.