Norway: authorized increase in gas extraction to help Europe … and collect more money
Norwegian authorities have approved requests from extractors to increase production from several gas fields, the Norwegian Ministry of Oil and Energy said Monday, expecting record sales of gas through pipelines to Europe this year.
The ministry accepted requests from operators on the platform and authorized increased gas production from the Troll, Gina Krog, Duva, Oseberg, Åsgard and Mikkel fields. The Ministry of Energy also granted a production permit for the Nova gas field, which was only to be started up in the near future.
Permits for increased gas production mean Norway is on track to export record volumes of gas through its pipeline system this year, the ministry said.
Norway's decision to authorize increased gas production and record export comes as its partners, the EU and the UK, scramble to find gas supplies ahead of winter, which could be characterized by rationing for some industries and even for families, if gas supplies from Russian pipelines to Europe were to stop.
According to the Norwegian ministry, Norway's gas fields supply 20-25% of gas demand in the EU and the UK.
The most important thing Norway can do in the current difficult energy situation for Europe and the world is to make it easier for companies operating on the Norwegian continental shelf to maintain their current high production, the Minister of Oil and Gas said today. 'Energy Terje Aasland in a statement.
Companies are constantly evaluating opportunities to supply more gas and oil from their Norwegian fields. “The higher production permits will contribute to the record gas sales we expect this year through our pipeline system,” Aasland added.
Gas prices in Europe have risen again in recent weeks after Russia cut gas supplies in mid-June to major European customers, including Germany and Italy. With this increase in production, Norway achieves two different objectives: on the one hand, it strongly increases its monetary income by selling spot gas at very high prices, and on the other it helps to alleviate the consequences of the decline in Russian gas imports. However, all this will not be enough to solve supply problems.
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The article Norway: authorized increase in gas extraction to help Europe… and collect more money comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/norvegia-autorizzato-aumento-estrazione-gas-per-aiutare-leuropa-e-incassare-piu-soldi/ on Tue, 05 Jul 2022 07:00:40 +0000.