Norwegian gas supply surpasses forecast in July
Norwegian natural gas supply beat the government's forecast by 5.6% in July, arriving at 351mn m3/day, the Norwegian Petroleum Directorate (NPD) reported on August 22, as soaring prices continue to spur increased output.
Production was also up 13.1% year/year and 5.7% month/month, according to the NPD. Oil and liquids output was in contrast 10.9% below the forecast and down 6.1% yr/yr, but up 23.9% m/m.
Norway's government approved increased production from key gas fields in early July, as Europe's supply crunch worsens with successive Russian cuts to deliveries and demand remains robust, driving up prices. The energy ministry granted permits for increased gas flow from the Troll, Gina Krog, Duva, Oseberg, Asgard and Mikkel fields, helping to maintain Norwegian production at full tilt into next year.
"The most important thing Norway can do in today's demanding energy situation for Europe and the world is to facilitate that the companies on the shelf can maintain today's high production," petroleum and energy minister Terje Aasland said in early July. "The companies are continuously assessing the opportunities they have for delivering more gas and oil."
Futures contracts at the Dutch TTF hub spiked at €276/MWh ($2,940/'000 m3) in early trading on August 22, after Gazprom revealed at the end of last week that Nord Stream would be closed for three days from August 31 so that maintenance could take place at the Portovaya compressor station.
Norway has capitalised from its significant exposure to high European spot market prices, with revenues from the country's natural gas exports soaring to a record last month of 128.4bn kroner ($13.2bn).