Norway Fuel Manufacturing in July Tops Forecast by 12 %

Norway produced 360 million cubic meters (12.7 billion cubic toes or Bcf) per day (MMcmd) of pure fuel final month, 12.3 % greater than the official forecast, authorities information confirmed Tuesday.

Fuel output in 2024 has grown persistently year-on-year. July’s determine was additionally up from 345.8 MMcmd (12.2 Bcfd) in June, in response to the info launched by the Norwegian Offshore Directorate.

The Nordic nation, a key fuel provider for Europe, offered 11.2 Bcm (395.5 Bcf) of fuel final month, up by 800 MMcm (28.3 Bcf) in comparison with the prior month.

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Norway produced 1.8 million barrels per day (MMbd) of oil in July, up from the prior month and steady in comparison with July 2023. July’s petroleum manufacturing beat the projection by 5.9 %.

Complete liquid manufacturing stood at 2.1 MMbd whereas fuel and liquid manufacturing totaled 691,000 cubic meters (24.4 MMcf) of oil equal per day, topping the forecasts by 6.2 % and 9.3 % respectively.

EU Market

The most recent quarterly fuel market report of the European Fee confirmed Norway remained the European Union’s largest supply of pipeline fuel within the first quarter of 2024, accounting for 54 % or 22 Bcm (776.9 Bcf). Norway’s total share of the EU’s fuel imports, together with liquefied pure fuel, within the first three months of the yr was 34 %, forward of the USA (20 %) and Russia (19 %).

Norway has overtaken Russia because the EU’s prime fuel provider because the latter half of 2022, months after Russia invaded Ukraine, in response to Fee information.

Nevertheless, it was solely in 2024 that the EU allowed member states to cease importing fuel produced in Russia into their territories. The choice is contained in a regulation adopted Might 21 by the European Council. The fuel and hydrogen market regulation goals to advertise lower-carbon fuel fuels, diversify supply nations and enhance worth affordability.

“The up to date fuel market framework provides Member States the chance to cease or restrict imports of each piped fuel and LNG from Russia and Belarus, according to the REPowerEU goals”, the Fee stated in an announcement then. REPowerEU outlines the 27-member bloc’s plans to attain vitality independence from Russia, launched in response to the battle.

EU governments should first seek the advice of the Fee earlier than imposing any restriction on Russian fuel to make sure such an motion doesn’t undermine provide and breach obligations to 3rd nations, in response to the regulation.

The scarcity of fossil fuels in Europe following the battle has seen a sanctioning increase for tasks on the Norwegian continental shelf (NCS). “These tasks sanctioned below Norway’s momentary tax regime will assist preserve excessive fuel manufacturing on the NCS in the direction of 2030”, Rystad Power stated in an evaluation revealed January 25, 2023.

“Whereas key producing fields corresponding to Troll, Oseberg and Aasta Hansteen will slowly enter the decline part within the coming years, tax regime tasks corresponding to Aker BP’s Yggdrasil Hub (start-up in 2027), Shell’s Part 3 of Ormen Lange (start-up in 2025) and Equinor’s Irpa (start-up in 2026) will likely be significantly vital in sustaining a gentle excessive movement of fuel from Norway to Europe”.

Norway’s fuel manufacturing is predicted to succeed in 121 Bcm (4.3 trillion cubic toes) in 2028, which might place it to produce over 30 % of the EU and the UK’s fuel wants, in response to the analysis and vitality intelligence agency.

“NCS liquids manufacturing can be anticipated to maintain going ahead”, due to tasks below each the momentary tax break and earlier than this aid, Rystad Power added.

To contact the creator, electronic mail jov.onsat@rigzone.com