Norway's Natural Gas Exports Surge in 2024

Norway's gas exports are soaring so far this year. So much so, they are on track to challenge historical records, with pipeline deliveries to Europe up 10% year-on-year. This year’s surge follows the 2023 lull, and positions Norway as Europe's leading gas supplier after Russia's exports dwindled post-Ukraine invasion. Gassco, Norway's system operator, reported that 70.2 billion cubic meters (bcm) of gas were delivered by the end of July, compared to 64 bcm during the same period last year.

Strong European demand, high system availability, and reduced maintenance at the Kollsnes processing plant all contributed to the increase, Gasco's CEO, Frode Leversund, told Reuters.

Leversund noted that if the trend continues, Norway could approach or even surpass its 2017 record of 117.4 bcm. While Leversund is cautious about declaring a new export record, he acknowledges that 2024's figures will likely rank among the highest in history.

Norway's gas export system— an 8,800-km pipeline network that supplies Belgium, Britain, France, Germany, and Denmark—is crucial to Europe's energy stability. It’s also crucial to Norway, with 95% of its gas exports delivered via pipelines. The EU's gas inventories—an often utilized metric that assesses the Union's state of energy preparedness heading into heating season—are currently 86.7% full, Saco Bank's head of commodity strategy Ole Hansen said last week.

Any disruptions in the flow of nat gas from Norway—during maintenance season, for example—could impact gas prices. The security of this network has come under increased scrutiny since the 2022 Nord Stream pipeline sabotage, with Gassco enhancing its inspection efforts.

Norway supplies about 30% of Europe's natural gas.

By Julianne Geiger for Oilprice.com

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