Enhanced production permits were authorised by the Ministry of Petroleum and Energy for the Oseberg and Troll fields.
They have both been increased by 1 billion m3 for the gas year starting 1 October.
Helge Haugane, senior vice president of gas and power at Equinor said:
- The production permits allow us to produce more gas from these 2 important fields this fall and through the winter
- We believe this is very timely as Europe is facing an unusually tight market for natural gas
This follows a comment made by Amos Hochstein, a senior US energy adviser, after he had visited Kiev and said that:
- lives are at stake over Europe’s low gas stockpiles and the threat of reduced supply
Russia has been sending less gas to Europe, for reasons debated in the industry which include Russia’s need to refill its own storage to the suspicion that it is trying to pressure European governments, including Germany, to approve the start-up of the highly controversial Nord Stream 2 gas pipeline.
- It is a complex balancing act
Analysts remain cautious, however, saying that despite today’s global shortages, financiers and buyers must still be willing to bet that demand for LNG.
Alex Munton, an analyst at energy consultancy Wood Mackenzie told The Financial Times:
Never before has US LNG looked this good. but it’s not that simple when you get into the detail
Society and policy is trying to point them away from putting a 20-year gas contract on their books
They’ve got to sell it to investors who are basically saying: «what are you doing? You should be getting into wind»