Tuesday, September 25, 2018

"Norwegian gas exports to [the rest of] Europe jump"

This is positive for both buyer and seller. However...the onus is on Norway to find the stuff. They know the reserves are out there but the easy-to-recover reserves were found 20-30 years ago and current targets are a lot more challenging.

And the buyers had better realize, as the Poles have, that in addition to the BTUs or therms you are also buying a bit of supply insurance with your slightly higher prices.
It's probably better to do your next-decade negotiations in Norwegian than in Russian.

From LNG World News:
Gassco, the company running the Norwegian gas infrastructure, exported 36.8 billion cubic meters of natural gas during the May-August period hitting a new peak for summer deliveries. 
The operator noted this was a small rise from the same period of 2017, which was a record year for gas exports.

“The basis for these high deliveries is naturally European and British demand for Norwegian gas,” said Gassco CEO Frode Leversund.

More gas is usually exported in the winter months when demand for space heating increases, but this summer’s sales have almost matched a normal winter level.

Gassco transported 117.4 billion scm through the pipeline systems from Norway to continental Europe and the UK during 2017. This was clearly the highest volume sold in 40 years of Norwegian gas exports, and nine times Norway’s annual hydropower output....MORE