Record-Breaking Year for Natural Gas Exports
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Norway’s natural gas exports are poised to hit an all-time high this year, with Equinor’s Senior VP Helge Haugane forecasting a surge in output. Haugane, speaking to Bloomberg, highlighted a reduction in scheduled maintenance across facilities as the key driver behind this bullish projection.
Reduced Maintenance Boosts Output Prospects
“We could get higher volumes than what we saw last year,” remarked Haugane, alluding to the decreased maintenance schedules. He pointed out that in 2023, maintenance hung over operations, but anticipated a smoother run in 2024.
European Energy Security Implications
Norway stands as Europe’s principal natural gas supplier, dispatching approximately 109 billion cubic meters of gas to the continent in 2023. The crucial role of Norwegian gas in ensuring Europe’s energy security came sharply into focus last summer when unscheduled maintenance at its facilities sent waves of unease through the markets.
Impact of Dwindling Russian Pipeline Gas
“Russian pipeline gas is practically out for Europe, and liquefied natural gas will definitely have a longer response time than pipeline gas,” Haugane remarked in the interview. “That’s one of the reasons why we expect more volatility going forward.”
Enhancing Facility Capacities
Equinor has been actively bolstering the capacity of its facilities, with a notable focus on alleviating bottlenecks at Kollsnes. Haugane highlighted the successful increase in capacity from 144 million cubic meters per day to 156 million cubic meters per day.
Expanding LNG Portfolio
The company has been diligently expanding its LNG portfolio, recently securing deals to purchase the fuel from Cheniere Energy and supply it to India’s Deepak Fertilisers. Haugane emphasized the strategic vision, “We are building an LNG portfolio, with supply from Norway and the U.S., and we have some other deals which we haven’t disclosed, and then we want to have a diversified outlet for that LNG as well.”
