Equinor Boosting Gas Deliveries to Europe Amid Supply Crunch
Norwegian Equinor will increase gas supplies to Europe, as together with partners it has have received production permits for the gas year 2021 (starting 1 October) which for each is 1 bcm higher than for the current year, i.e. an increase from 5 bcm to 6 bcm for Oseberg and from 36 bcm to 37 bcm for Troll, Trend reports with reference to the company.
Gas prices in Europe have been growing since the beginning of the year, having almost quadrupled. A gas supply crunch is boosting the cost of producing power from the U.K. to Germany just as businesses reopen and people return to the office, increasing demand. Hot weather and low wind speeds are curbing renewable power production, boosting the use of fossil fuel-fired generation and pushing the price of coal up more than 70 percent in Europe this year. Europe can’t count on its own production either, with several outages disrupting flows from the North Sea. Domestic output is also in decline, with the giant Groningen gas field in the Netherlands possibly closing three years ahead of schedule.
Helge Haugane, senior vice president Gas & Power noted that the output permits enable the company to produce more gas from the abovementioned two fields in the autumn and winter. Haugane believes that this is very timely for Europe, which has faced gas crisis. “At Equinor we are working on measures to increase exports from our fields on the NCS”.
Around 50 percent of the gas is left in the ground at Troll field. To further develop the Troll-area and reinforce its ability to secure gas deliveries to Europe in the coming decades, Equinor has recently completed the Troll Phase 3 project.
Recoverable volumes from Troll phase 3, which will produce the Troll West gas cap with industry leading low CO2 emissions, are estimated at as much as 347 billion standard cubic metres of gas. Total recoverable gas volume remaining in Troll is estimated to be 715 billion standard cubic metres.