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    Norway Flows Record Gas to Germany in 2020


Gas displaced coal in power generation in some European markets last year.

by: Joe Murphy

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Norway Flows Record Gas to Germany in 2020

Norwegian gas supplies to Germany reached a record 49.9bn m3 in 2020, up from 47.6bn m3 a year earlier, Norwegian transmission system operator Gassco reported on January 18.

European gas prices fell to historic lows last year as a result of Covid-19 lockdowns, mild weather, high levels of gas in storage and extra LNG imports. But these same low prices supported demand in some markets like Germany, where cheap gas displaced coal in the power sector.

The volume for Norwegian deliveries to Germany includes supplies that were transited onto other markets, such as Poland, which has equity production offshore Norway. Norway's overall deliveries to Europe reached 107bn m3 in 2020, barely changed from 106.9bn m3 in 2019.

"By delivering at such a high and stable rate in a very unusual year, we have clearly demonstrated the size of the demand for natural gas in a Europe which wants to reduce its consumption of coal as an energy source," Gassco CEO Frode Leversund said in a statement. 

Germany's main supplier is Russia and it also used to get sizeable volumes from the Netherlands, but those deliveries have been curbed as the quake-causing Groningen has wound down production in recent years.