NORWEGIAN GAS IS STABLE

PLATTS- 05 Apr 2022 - Norway's pipeline gas exports to continental Europe and the UK remained robust in March on sustained high prices, though maintenance work -- both planned and unplanned -- kept a lid on output. 

An analysis of data from S&P Global Commodity Insights showed April 5 that Norwegian deliveries totaled 9.94 Bcm in March -- or an average of 321 million cu m/d. 

The total volume is higher than in February, but lower on a daily average basis given February is a shorter month. 

Average deliveries hit a five-year high in December 2021 of 334 million cu m/d as suppliers looked to make the most of record high European gas prices, with some producers diverting re-injection gas for export. 

European gas prices have been highly volatile since the Russian invasion of Ukraine on Feb. 24. 

The TTF front-month contract reached a record high of Eur212.15/MWh on March 8, according to Platts price assessments by S&P Global Commodity Insights. 

The contract averaged Eur130/MWh in March.

Maintenance work

Despite production remaining strong in Norway, planned and unplanned maintenance impacted Norwegian exports, particularly in the second half of March, with outages at Aasta Hansteen (March 16-19), Troll (March 22-24), Kristin (March 23), Karsto (March 23) and Oseberg (March 25-29). 

But in general, Norway's supply remains strong, with flows boosted by moves by Equinor and others to divert gas usually used for reinjection for oil recovery for export to Europe. 

Aker BP said March 28 it had decided to halt gas injection altogether at two parts of the Skarv field, allowing for Skarv gas exports to increase by up to 20%. 

It came after Norway's energy ministry said it had given Aker BP and its partners permission to begin gas "blowdown" -- meaning a production profile shift to increased gas production -- this year at the B and C segments of Skarv. 

Aker BP increased the processing and export capacity of the dedicated production vessel at Skarv through 2021 and the beginning of 2022 in preparation for the new production profile. 

State-controlled Equinor also plans to maintain higher gas output at its Heidrun, Oseberg and Troll fields through the summer after increased production permits were approved by the energy ministry.

Country flows

On a country-by-country basis, supplies of Norwegian gas to Germany remained high in March, partly compensating for lower deliveries from Russia. 

German imports from Norway totaled 3.42 Bcm in March, only slightly down on the multiyear high in January of 3.74 Bcm. 

Deliveries to the Netherlands stayed low, coming in at just above 1 Bcm, having dipped below that level for two months in a row in January and February. 

Supplies to the UK remained steady in March at 2.46 Bcm, while deliveries into France and Belgium were 1.56 Bcm and 1.32 Bcm, respectively. 

Norwegian continental shelf production, meanwhile, continues to be hampered by the long-term outage at the Hammerfest LNG export facility, which was hit by a fire in September 2020. 

As a consequence of the shutdown of Hammerfest LNG, the Snohvit, Albatross and Askeladd fields have also been shut in. 

The latest guidance from Equinor is for the plant to resume operations on May 17.

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