Equinor sold natural gas for around US$26 billion in total in 2018, an increase of 29% from 2017, Equinor executives said during its Gas Seminar in London on Feb. 21. The Norwegian-based company said it “sees strong market opportunities for gas and expects global demand to grow by around 10% towards 2030.”

Meanwhile, a survey of oil and gas companies working in Norway by the country’s statistic agency found those companies have lowered their investment forecasts for oi for 2019 to 172.7 billion crowns (US$20.1 billion) from 175.3 billion crowns seen in November,

Equinor said it’s well-positioned for the transition as 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.

“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,” said 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.

According to Equinor, the UK has successfully reduced its CO2 emissions by more than one third—to levels since the late 19th centur—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 realize the full potential of the energy transition,” Rummelhoff said.

In an energy scenario consistent with the 2-degree 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 Bcm of gas worldwide. Changing markets also introduce new commercial opportunities on the trading side. As more LNG and intermittent renewables enter the market, Equinor is preparing to capitalize 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,” said Tor Martin Anfinnsen, Equinor’s senior vice president for marketing and trading.

Reuters contributed to this report.

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