Natural gas contributes to the low carbon future
Published by Lydia Woellwarth,
Equinor sold natural gas for around US$26 billion in total in 2018, an increase of 29% from 2017. As more countries prepare for the energy transition, Equinor sees strong market opportunities for gas and expects global demand to grow by around 10% towards 2030.
Equinor is the largest producer of natural gas on the Norwegian continental shelf and the second-largest gas supplier to Europe. The company also has a significant gas portfolio outside Norway. At its Gas Seminar in London today (21 February), Equinor outlines its gas position as well as its long-term market outlook.
“Global energy markets are changing. The world needs more energy, but lower emissions. Natural gas is well positioned to provide secure, competitive and sustainable energy to consumers and industry: Reducing CO2 emissions by 50% when replacing coal, providing needed back-up to renewables and offering a long-term solution for the low carbon future if converted to hydrogen,” says Irene Rummelhoff, Equinor’s Executive Vice President for marketing, midstream and processing.
In addition to its own gas volumes, Equinor markets and sells the volumes of the Norwegian state’s direct financial interests (SDFI). In total, Norwegian gas provides about 25% of Europe’s gas. A well-developed and efficient gas infrastructure and proximity to the market make Norwegian gas highly competitive, with the UK and Germany as the largest export markets.
“The UK has successfully reduced its CO2 emissions by more than one third – to levels since the late 19th century – using gas, renewables and other measures. We are also encouraged by the policy signals from Germany on the role of gas in phasing out coal and look forward to continue working with our partners across Europe to realise the full potential of the energy transition,” says Rummelhoff.
In an energy scenario consistent with the 2°C climate target, global gas demand would only be slightly lower than today even in 2050. That entails massive needs for investment in future gas supply in the decades to come. Equinor is actively exploring for gas on the Norwegian continental shelf.
In 2018, Equinor sold a total of 100 billion m3 of gas worldwide. Changing markets also introduce new commercial opportunities on the trading side. As more liquefied natural gas (LNG) and intermittent renewables enter the market, Equinor is preparing to capitalise on increased price volatility.
“The traded gas markets are developing rapidly and a key to success will be agility and ability to respond quickly to price fluctuations. The demand for shorter dated indices is increasing and our response is to reflect this development in our trading,” says Tor Martin Anfinnsen, Equinor’s Senior Vice President for marketing and trading.
Read the article online at: https://www.worldpipelines.com/business-news/21022019/natural-gas-contributes-to-the-low-carbon-future/
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