Norway plans to keep natural gas production at current high levels through 2030 as Europe plans to cut imports from Russia due to the Russia-Ukraine conflict, Energy Minister Terje Aasland said on Tuesday. This offers a glimmer of hope for Europe, which is at the “epicenter” of the energy crisis.
“I expect we can maintain current production levels until 2030,” Terje Aasland said in an interview. “There are now a number of projects and programs in development and operation that could help maintain high gas production in the future.”
Norway’s natural gas output expected to hit record high this year
Natural gas production in Norway is expected to reach 122 billion cubic meters this year, up 8 percent from 2021, according to official forecasts in May, and could break the record set five years ago.
Norway’s gas exports hit a record high of 128.4 billion crowns ($13.26 billion) in July as gas prices and demand soared in Europe, according to official data released last week.
Statistics Norway said the country’s gas revenue in July was four times higher than a year earlier, while gas sales rose 5.7 percent to 10.2 billion cubic meters.
Norway’s energy ministry said last month that it had agreed to revise licences for the Troll, Gina Krog, Duva, Oseberg, Asgard and Mikkel gas fields. This would allow Norway to produce gas at full capacity, helping Norway to replace or partially replace Russia’s plummeting gas production.
According to Refinitiv Eikon, a financial data service provider, Norway has now become Europe’s largest gas supplier, surpassing Russia. After the outbreak of the Russia-Ukraine conflict, Europe has launched several rounds of sanctions against Russia, and Russia’s natural gas supply to Europe has dropped significantly compared with before the conflict.
Has the European energy crisis been saved?
Norway’s natural gas production will remain high, bringing a ray of hope to Europe, which is currently mired in an energy crisis. With gas supplies from Russia dwindling, Europe is looking to get more from other countries, including Norway.
Norway accounts for about 25% of the total gas supply in Europe.
European gas prices have soared this week, up 15 times compared to the same period last year, after Gazprom said it would shut down the Nord Stream 1 pipeline for three days from Aug. 31 due to maintenance needs .