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    Norwegian gas output surpasses forecast in Dec

Summary

December saw gas prices in Europe spike on concerns about Russian supply.

by: Joseph Murphy

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Corporate, Exploration & Production, News By Country, Norway

Norwegian gas output surpasses forecast in Dec

Norwegian natural gas production came in at 5.7% above the forecast in December, at 353.1mn m3/day, the Norwegian Petroleum Directorate (NPD) reported on January 20.

Output was also up 2% month on month and up 6.4% year on year. Norwegian exporters that sell their gas on the spot market were incentivised to boost supply by record hub prices last month, following a sharp dip in Russian supply and continuing robust demand.

The month-ahead contract at the Dutch TTF hub reached a record 184 ($208)/MWh on December 21, but has since eased back to less than half that level.

In contrast to gas, Norwegian liquids supply was 2.9% below the forecast and down 1.5% year on ear, but up 6.9% month on month. A driving force behind oil production growth in Norway over the past two years has been rising flow at Equinor's Johan Sverdrup field, the country's biggest producer of crude.