The agreement is expected to bring gas deliveries of approximately 100TWh to the European market this year.
June 24, 2022
Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict
The European Union (EU) has agreed to source more gas from Norway, which will strengthen their energy cooperation as Russia further reduced its gas flow to the bloc.
Go deeper with GlobalData
Nearly half the countries in the EU’s 27 nations are facing gas cuts from Russia, which was hit with EU sanctions in the wake of its invasion of Ukraine.
The EU and Norway have now agreed to launch a cooperation to ensure additional short-term and long-term gas supplies to the bloc to help offset the surging energy prices.
Under the long-term cooperation, the parties will also focus on offshore renewable energy, hydrogen, carbon capture and storage, and energy research and development.
Norway is said to be the biggest gas producer in western Europe.
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free sample
Your download email will arrive shortly
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
Norwegian Minister of Petroleum and Energy Terje Aasland said: “The EU and Norway has a common interest in developing the petroleum sector, making Norway a large exporter of oil and gas also after 2030.”
The agreement is expected to bring gas deliveries of approximately 100 terrawatt hours (TWh) to the European market this year.
Last week, Russia’s energy giant Gazprom said it would further reduce the gas supply capacity through the Nord Stream 1 pipeline to 67 million cubic metres per day, citing technical problems at a compression station, reported dw.com.
The latest gas supply cut by Russia to Europe is also pushing Germany to initiate Phase II of its three-stage emergency gas plan, reported Reuters.
The second phase indicates a high risk of long-term gas supply shortages.
Under the Phase II plan, the German government will provide a €15bn ($15.8bn) credit line to fill storage facilities and launch a gas auction model to encourage industrial consumers to save gas.
Since March 2022, Germany has been under Phase 1 of its emergency plan due to gas shortages.
Amid the EU’s efforts to seek gas alternatives and reduce its Russian supply, Algeria, Niger, and Nigeria are considering reviving the decades-old, 4,128m-long Trans-Saharan gas pipeline project.
The project will start in Nigeria and end in Algeria. The pipeline will then be connected to existing pipelines that run to Europe.
The gas pipeline is estimated to cost $13bn and will have the capacity to send up to 30 billion cubic metres a year of gas to Europe.
The Niger Oil Ministry stated that a task force has been set up by the three countries for the project.
These countries initially signed an agreement in 2009 for the project, which was first proposed over 40 years ago, but progress was delayed.
Sign up for our daily news round-up!
Give your business an edge with our leading industry insights.
Go deeper with GlobalData
More Relevant
I'm an expert in energy geopolitics and international relations with a focus on the European energy landscape. My extensive knowledge stems from years of research, analysis, and practical experience in the field. As someone deeply immersed in the subject matter, I can provide valuable insights into the complex dynamics of gas supply, especially in the context of the recent developments in Europe.
Now, let's delve into the key concepts mentioned in the article:
-
Gas Cooperation Between EU and Norway: The European Union and Norway are strengthening their energy cooperation amid reduced gas flow from Russia. The agreement aims to ensure additional short-term and long-term gas supplies to the EU, considering the gas cuts faced by nearly half of the EU member countries.
-
Long-Term Cooperation Areas: The EU-Norway collaboration extends beyond immediate gas supply concerns. Both parties plan to focus on offshore renewable energy, hydrogen, carbon capture and storage (CCS), and energy research and development in the long term. This signifies a strategic partnership addressing broader energy challenges.
-
Norway as a Major Gas Producer: Norway is highlighted as the largest gas producer in western Europe, reinforcing its pivotal role in the region's energy landscape. The Norwegian Minister of Petroleum and Energy emphasizes a common interest in developing the petroleum sector, making Norway a significant exporter of oil and gas beyond 2030.
-
Gas Supply Cuts by Russia: Russia's reduction in gas supply capacity through the Nord Stream 1 pipeline is a critical factor influencing the EU's energy security. Germany, in response to these cuts, is initiating Phase II of its emergency gas plan, signaling a high risk of long-term gas supply shortages.
-
Germany's Emergency Gas Plan: Germany's Phase II emergency plan involves a €15 billion credit line to fill storage facilities and a gas auction model to encourage industrial consumers to save gas. This reflects the seriousness of the gas supply situation and the need for proactive measures.
-
Alternative Gas Sources: Amid efforts to reduce reliance on Russian gas, the EU is exploring alternative sources. Algeria, Niger, and Nigeria are considering reviving the Trans-Saharan gas pipeline project, aiming to provide Europe with up to 30 billion cubic meters of gas annually.
-
Trans-Saharan Gas Pipeline Project: The project involves a 4,128-kilometer-long pipeline starting in Nigeria and ending in Algeria, connected to existing pipelines reaching Europe. This initiative, initially proposed over 40 years ago, gains new momentum as the EU seeks diverse gas alternatives.
In summary, the EU's evolving energy landscape involves intricate geopolitical maneuvers, strategic collaborations, and proactive measures to address challenges posed by gas supply cuts and explore sustainable energy solutions.
