Gas exports from Russia and Norway to Europe reached their highest levels in 2017, an analysis by Rystad Energy on February 14, 2018 proved.
Norwegian Russian gas exports to Europe (including Turkey) reached 122 bcm and 194 bcm, respectively, in 2017. According to Rystad, this represents a more than 15 bcm year-on-year increase for Russia and 9 bcm for Norway. Both countries have shown upward production trends since 2014.
The increased exports have provided reliable gas supplies for Europe and indicate that the strategy followed by Norway and Russia has been to keep their market share while benefiting European consumers as prices in North-West Europe remained fairly stable. This has also been keeping new USA supplies of LNG out of Europe thus enabling the US gas to meet increasing demand in Asia and Latin America, Rystad Energy’s Gas Markets Vice President Carlos Torres-Diaz said.
He expects yearly output from several key gas fields in Norway – Aasgard, Ormen Lange and Kvitebjorn – to decrease by 10 bcm by 2020 as compared to their output levels recorded in 2017. In contrast, Rystad Energy sees increased gas output in Russia going forward.
With the expansion of the Yamal LNG plant and the completion of the Power of Siberia gas pipeline, it is expected that exports to Asia will grow. However, the higher output along with the continuation of Gazprom’s Turk Stream and Nord Stream 2 projects for pipeline construction, promises large potential for even higher exports to Europe, which is the main market for Russia, Torres-Diaz said.