Markets
12/11/2017

Last Year, Record Amount Of Gas Was Exported To Europe By Norway




Compared to the volume of gas exported to Europe in 2015, an increase of 9 billion cubic meters of gas in exports from Norway to Europe was seen last year which was at a record high of 123 billion, according to a report in the newspaper Aftenposten.
 
The new paper report further said that the increased demand for gas in Europe was mostly covered by Norway and Russia as, between October 2016 to October 2017, there was an increase of 20 billion standard cubic meters in demand for gas from the European countries.
 
Kin recent years, permission for extraction of more gas for exports and consumption has been granted by the Norwegian government from the Troll gas field in the North Sea and this has resulted in the country having more gas to sell, said the news report. In a period of just two years, that region has seen the total extraction and production of gas increase to 36 billion cubic meters from 30 billion cubic meters.
 
Due to the fact that for the extraction of oil, there is need for constantly keeping up the pressure in the reservoir, hence the Norwegian authorities are forced to control the amount of gas that is extracted from this field.
 
And one of the largest gas exporters to the European Union is Statoil which is a Norwegian state-owned company.
 
"There are several reasons why there is now increased craving for Norwegian gas in Europe," Tor Martin Anfinnsen, Statoil's Director of Marketing and Trading of Gas, told Aftenposten.
 
"For a while, we have seen demand for gas going down, but now it is increasing. The reason is, among other things, that the EU's own production of gas goes down. This is especially true in the Netherlands," he explained.
 
In the process of power supply, coal is replaced by gas and this the reason that there is increased consumption of gas and hence increased demand, according to Statoil. There are two reasons for this replacement – political decisions about reducing coal consumption for reducing carbon emission and partly due to the increased prices of coal.
 
"The tendency of more gas being used for power generation will continue. The same is with the policy decisions in the UK to phase out coal and that older nuclear power is being phased out in other places in Europe," Anfinnsen said.
 
"The goal is to replace this with renewable energy. But since power generation from renewable sources varies with the weather, one needs the stability that gas can provide in the power supply, " he said.
 
Separation of carbon dioxide through the process of decarbonization of the gas is one of the major factors that would be decisive in determining whether gas would be used in Europe until 2040-50 and hence the future of gas in Europe depends on it. The news report further said that in this technological advancement and projects, Statoil seems to have come furthest.
 
(Source:www.xinhuanet.com) 

Christopher J. Mitchell
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