# Exclusive-Norway eyes high gas output until 2030, says energy minister Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-23 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Norway to Maintain High Gas Production Levels Amid Europe's Plans to Ditch Russian Imports Meta Description: Norway's energy minister expects to sustain current gas output until the end of the decade, offering stability amid geopolitical tensions and market URL: https://financedigest.com/exclusive-norway-eyes-high-gas-output-until-2030-says-energy-ministerhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-23t160143z2lynxmpei7m0pertroptp4norway-gas-1736815387887-compressed.jpg) By Nora Buli and Nerijus Adomaitis OSLO (Reuters) – Norway plans to maintain its current high gas production level until the end of the decade as Europe plans to ditch Russian imports over Moscow’s invasion of Ukraine, its energy minister said on Tuesday. “I expect that we can maintain the production levels we are at now until 2030,” Terje Aasland told Reuters in an interview. We see that there are projects and also [plans for development and operation coming](https://www.financedigest.com/uk-orders-housebuilders-to-come-up-with-5-billion-plan-to-remove-cladding.html "UK orders housebuilders to come up with billion plan to remove cladding") now that can help maintain the high gas volumes going forward,” he said. The Nordic country is expected to produce some 122 billion cubic metres (bcm) of gas this year, according to official forecasts made in May, an increase of 8% from 2021, possibly beating a [record set](https://www.financedigest.com/markets-slammed-with-noise-investors-trust-tone-to-set-the-record-straight.html "Markets Slammed With Noise, Investors Trust Tone to Set the Record Straight") five years ago. Graphic: Norway gas production could set new [record](https://www.financedigest.com/norways-wealth-fund-loses-record-174-billion-in-first-half-of-2022.html "Norway’s wealth fund loses record 4 billion in first half of 2022") in 2022 Norway gas production could set new record in 2022 https://graphics.reuters.com/NORWAY-GAS/xmpjomwxevr/chart.png ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/010-1736815388220-compressed.jpg) The Norwegian Petroleum Directorate predicted in January that gas output would be at 118 bcm – lower than the current level – in 2026, the furthest [year out forecast](https://www.financedigest.com/global-automotive-brake-system-market-is-expected-to-witness-a-rise-of-3-cagr-between-the-forecast-years-of-2020-2030.html "Global Automotive Brake System Market is expected to witness a rise of 3% CAGR between the forecast years of 2020-2030") by the regulator. Norway is now Europe’s biggest supplier of gas, according to Refinitiv Eikon data, overtaking Russia, which has [cut back](https://www.financedigest.com/ecb-policymakers-back-jumbo-rate-hike-differ-on-balance-sheet-cut.html "ECB policymakers back jumbo rate hike, differ on balance sheet cut") on its gas deliveries. Graphic: [Pipeline gas supplies](https://www.financedigest.com/keystone-oil-pipeline-restart-timetable-unclear-traders-worry-about-supply.html "Keystone oil pipeline restart timetable unclear; traders worry about supply") to Europe https://graphics.reuters.com/UKRAINE-CRISIS/lgvdwybzlpo/chart.png ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/011-1736815388176-compressed.jpg) The minister said he was also more confident about long-term demand for Norwegian gas in Europe after the non-EU member and the European Union [signed an agreement](https://www.financedigest.com/japan-uk-to-sign-reciprocal-access-agreement-for-military-officers-yomiuri.html "Japan, UK to sign reciprocal access agreement for military officers -Yomiuri") in June to enhance gas imports from the Norwegian continental shelf. “This is an important message to get from the EU,” Aasland said. Norway has already responded to higher demand from Europe by diverting more gas for exports instead of injecting it back into the [ground to boost crude oil](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") production. The price of European gas has almost tripled this year, having repeatedly [hit new records](https://www.financedigest.com/londons-ftse-100-hits-fresh-record-high-as-telecoms-surge.html "London’s FTSE 100 hits fresh record high as telecoms surge"). Still, Norway does not plan to [sell gas at below market price](https://www.financedigest.com/3-tricks-to-get-a-better-price-when-selling-your-car.html "3 Tricks To Get a Better Price When Selling Your Car"), as some analysts and media have proposed. In principle, the [market is predictable](https://www.financedigest.com/heightened-interest-in-global-cuisines-to-brighten-the-expansion-prospects-of-herbs-and-spices-manufacturers-industry-predicted-to-rise-at-3-6-cagr-future-market-insights-inc.html "Heightened Interest in Global Cuisines to Brighten the Expansion Prospects of Herbs and Spices Manufacturers: Industry Predicted to Rise at 3.6% CAGR | Future Market Insights Inc. "). When there is scarcity, prices are high. That also contributes to increasing [production and steers the gas to the markets](https://www.financedigest.com/dry-molasses-products-market-overview-in-depth-analysis-of-market-size-growth-industry-overview-2022-2029-2.html "Dry Molasses Products Market Overview In-depth Analysis of Market Size, Growth, Industry Overview 2022-2029") that need it most,” Aasland said. “To disturb the market and make… rules that look good right now could contribute to ruining some of the ground for [building stability and trust](https://www.financedigest.com/how-financial-services-can-secure-data-and-build-trust-in-todays-modern-environment.html "How financial services can secure data and build trust in today’s modern environment") over time. He added Norway did not [plan to introduce a windfall tax](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") on Norwegian oil companies, despite them reaping record-high cash flows. “We are not having any discussions now about extra taxes. The additional revenue companies are potentially making now is forming the basis for [future investments](https://www.financedigest.com/investing-in-the-city-thats-investing-in-itself-welcome-to-the-liverpool-of-the-future.html "INVESTING IN THE CITY THAT’S INVESTING IN ITSELF – WELCOME TO THE LIVERPOOL OF THE FUTURE!  ") and the basis for the entire transformation of the energy sector,” Aasland said. Norway’s largest oil and gas producer, majority state-owned Equinor, aims to boost investments in renewable energy and low-carbon [technologies](https://www.financedigest.com/schneider-and-greenyellow-target-smaller-businesses-with-energy-saving-technology.html "Schneider and GreenYellow target smaller businesses with energy saving technology") to become a ‘broad energy’ company. The company however has said that it would step up exploration for new resources to [meet demand](https://www.financedigest.com/veterinary-tables-market-rise-to-meet-large-demand-in-coming-years-fact-mr-study.html "Veterinary Tables Market Rise To Meet Large Demand In Coming Years, Fact.MR Study") in Europe for Norwegian hydrocarbons. (Reporting by Nora Buli and Nerijus Adomaitis; Editing by Gwladys Fouche, Terje Solsvik and Jan Harvey) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---