Norwegian gas plays an increasingly important role in European energy supply, and transport system operator Gassco ensured reliable deliveries of high-quality natural gas to continental Europe and the UK in yet another pandemic year.
In total, Gassco delivered 113.2 billion cubic metres (BCM) through the pipeline network in 2021, up by six BCM from the year before.
Norwegian deliveries of natural gas now meet roughly a quarter of Europe’s energy consumption, and make an important contribution to the continent’s overall commitment to reducing greenhouse gas emissions.
“The year 2021 was characterised by a high level of activity and a large number of enquiries concerning the assessment of new tie-ins to the transport system,” reports Frode Leversund, CEO of Gassco.
“This tells us with all clarity how great the need for natural gas is in Europe, and how important this commodity is as a reliable energy source on the road to emission-free alternatives.”
Well-functioning value chain
Gassco operates and continues to develop one of the world’s most efficient and reliable gas transport systems. Supplying continental Europe and the UK with natural gas allows the company to maximise value creation from the gas resources on the Norwegian continental shelf (NCS).
Availability – or the ability to meet contractual delivery terms – was 99.7 per cent in 2021.
“To be able to deliver at this level, particularly in a pandemic year, we’re dependent on good collaboration throughout the value chain,” says Leversund. “More than 60 fields on the NCS produce gas, and the full-year results for 2021 show that all the players in the gas value chain have delivered in an impressive way.”
Demand expected to remain high
A number of optimisations were also implemented in the transport network during 2022. These make it possible to increase delivery capacity both in 2022 and in subsequent years.
“We also expect a high level of activity in 2022, both around new projects and with regard to gas demand,” says Leversund.
Among other developments, Gassco will be opening a new exit point in the transport system which allows Norwegian gas to be delivered to the Polish market.
“Access to Norwegian gas could help Poland to reduce CO2 emissions by 70 million tonnes per annum, assuming that deliveries from Norway replace coal-fired electricity generation,” says Leversund. “By comparison, total annual Norwegian emissions are 50 million tonnes.”
During 2021, Gassco also began adapting the transport network to meet future energy requirements. That included studying opportunities to use the gas infrastructure for transporting hydrogen and CO2.