Norway Nears Maximum Production

Norway is near the limit of its gas export possibilities, the chief of its main provider has said.

Europe's second-largest gas supplier after Russia, its pipelines are almost fully utilised and no major new fields are coming online soon, according to the head of the country's principal gas system operator. 

The Nordic country supplies about a fifth of the gas consumed in Europe. Britain has become increasingly dependent on Norwegian supply as its own reserves are falling by an average of more than 5% year.

Norway's gas exports will hit record volumes this year and then move sideways, Brian Bjordal, Gassco's president and chief executive, said in an interview with Reuters.

"This year, exports to Europe will be above 100 billion cubic metres (bcm)... It will be a record," Bjordal said. But he added that the gas transportation system was operating close to maximum capacity, limiting further export growth.

Oslo projects gas output for 2012 to rise to 107 bcm this year from 94.2 bcm in 2011, and to inch up to 110 bcm in 2013. 

The country produced 322mn m³/d of gas last month, according to preliminary figures.

Bjordal said Norway's gas production was going at "full blast", with no major additions coming online soon.

"At this point in time, the production system is more or less at its maximum. There are no fields that can introduce more gas."

Norwegian government officials said this week the country's exports would also depend on whether future European demand warranted the investment needed for new capacity.