Thursday, April 7 2016 18:21 EEST
Norway is going to bring gas prices down and oust Russia from markets
Oil, petrol, money, world, business, OPEC, Russia, gossip, gas, price, dollars, fuel, Norway, lost, oust, societe

Norway intends to increase the volume of gas production from its largest Troll field in order to challenge Russia and the USA in the market, Bloomberg writes. According to Statoil ASA, which is the field’s operator, gas production will increase by 10% this October.

Due to additional volumes, Norway will be able to oust Russia from European gas market. The agency also notes that in the case of a joint aggressive pricing policy, Russia and Norway could complicate deliveries of liquefied natural gas (LNG) from the United States to Europe. Thus, Americans can redirect their delivery to the markets of India and Brazil.

"That’s what Norway exactly intended to do – to defend its market share," an analyst from Societe Generale Thierry Bros says. He added that due to the price war, natural gas will continue to become cheaper and cheaper.

The volume of gas production from the Troll field will be increased to 33 billion cubic meters per year. This is equal to the annual gas need of a country like France.

Troll is the largest field in Norway. Its recoverable reserves are estimated at about 250-750 million tons of oil and 1.3 trillion cubic meters of natural gas.

It also was reported that Canada was considering deliveries of liquefied natural gas to Ukraine, which pumps reversible gas from Europe.

In March 2016, Russia used 12 private traders whose share surpassed Naftohaz of Ukraine’s share for the first time, amounting to 50.1% compared to 49.9% at the NAC.

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