Brussels, 10/02/2016 (Agence Europe) - Norway's Energy Minister Tord Lien, speaking at the 3rd EU-Norway energy conference in Brussels on Friday 5 February, underlined the key role of Norwegian gas for the EU's long-term energy mix. EU-Norway cooperation on energy will lie at the heart of the visit to Oslo of Energy Union Commissioner Maros Sefcovic on Thursday 11 and Friday 12 February.
“To ensure future expansion of our export pipeline system, we need clear signals (our gas) has a role in Europe's energy mix. Uncertainty reduces the likelihood of these investments being made”, said Lien.
Against a backdrop of low oil prices and the prospect of falling investment in the oil and gas sector, Norway and its energy group Statoil are looking for support in developing the massive gas resources in the Barents Sea, which could be sold as liquefied natural gas (LNG) throughout the world or piped to Europe.
“Norwegian gas and renewable energy are part of Europe's energy solution. The main goal of the European Union is a climate-friendly, efficient and secure energy system. Norwegian gas, as the least carbon-intensive fossil fuel, and renewables can play an important role in this respect”, Lien argued.
With the Commission due, on 16 November, to present its winter package for energy union, also called the gas supply security package, since it includes a review of the regulation on gas security and supply and a strategy on LNG and gas storage, Norway wants “a clear signal” on the role gas will play in the EU's future energy mix.
“The forthcoming winter package will be an important opportunity for the Commission to recognise the role of gas in decarbonisation of the European economy. A clear message from the Commission that natural gas remains important for the EU's energy mix for years to come would be a welcome signal to gas investors in Norway considering projects that would connect them to the EU market”, stressed Lien in a letter signed jointly with his colleagues Vidar Helgesen (Environment) and Elisabeth Aspaker (European Affairs), sent to Energy Commissioner Miguel Arias Canete on 29 January.
Norway has used up only about a third of its estimated gas reserves since 1970 and expects to use up another third over the next 20 years, leaving a third available for export beyond 2035. Almost all of Norway's gas production is exported, mainly to the EU, through pipelines from the Continental Shelf.
Exports of Norwegian gas to the EU have never been as high as in 2015, totalling 115 billion cubic metres, equivalent to almost a quarter of all EU consumption. “It would be difficult to increase these exports significantly but to maintain today's level is possible with investment. Our goal is to maintain a high level of exports to Europe”, Lien said on Friday.
A significant proportion of Norway's remaining gas reserves are to be found under the Barents Sea and decisions on additional export capacity from this field will be taken in the course of the next decade. “Such expansion demands very considerable up-front investments. Companies investing in this capacity will make their choice on a commercial basis, taking into consideration the prospects for gas in Europe”, said Lien and the other two ministers in the letter of 29 January.
On Friday, Commissioner Canete highlighted the excellent and significant cooperation between the EU and Norway and gave assurances as to Norway's importance as a long-term energy partner.
The commissioner said the EU would need to import more gas in coming years to make up for declining domestic production and that demand for gas in the EU would remain roughly stable at between 380 and 450 billion cubic metres per year. He gave a warning, however, that demand for gas would fall if energy efficiency was increased in the EU - according to Commission projections, a 30% improvement in energy efficiency would reduce the demand for gas by 24.5%.
“That gas will have to come from somewhere. Norway is a very reliable partner and gas supplier”, Canete stated, underlining, too that “LNG expansion represents a major opportunity for Europe”.
With regard to investment in the Barents Sea, Canete said that, for large infrastructure, there had to be “a market case”. The new list of 195 energy infrastructure projects of common interest (PCIs) eligible for financial support from the EU includes electricity connections between the EU and Norway but no gas links. (Original version in French by Emmanuel Hagry)