Norwegian gas into the future

Transcription

1 Norwegian gas into the future Norwegian Operators Conference, 18 November Frode Leversund, CEO, Gassco

2 World s largest offshore gas network km Largest diameter: 112 cm

3 Gas record share of total export value in % 26 % 20% 10% 0% Seasonally adjusted, gas as a share of total exports excluding ships and oil platforms. Source: Statistics Norway

4 Norwegian gas - a major source of energy for western Europe 109 BCM of natural gas were exported from the NCS during BCM in Gas exports to Europe are on a par with Russia s 82 fields in production

5 The export value of Norway s gas exceeded its oil earnings for the first time in 2015 Facsimile, Dagens Næringsliv, 17 Sep 2015 Facsimile from NRK Finnmark, 17 Sep 2015

6 Norwegian gas exports would fill the Empire State Building times Gassco delivered 101 bn scm in The volume of the Empire State Building is slightly over one mill scm.

7 Norwegian gas deliveries to Europe 2014 UK 25.9 BCM Consumption 71.5 BCM Germany 45.0 BCM Consumption 76.2 BCM Sources: Eurogas, G21 France 15.5 BCM Consumption 38.6 BCM Belgium 14.7 BCM Consumption 15.5 BCM

8 Government revenues from gas and NGL in 2014: NOK 170 billion

9 Towards a greener society

10 Natural gas key to decarbonisation Coal accounts for about 75% of European emissions from electricity generation Emissions from gas-fired power stations are less than half the level of coal-fired facilities per kwh generated Switching from coal to gas is a cost-efficient way to reduce emissions Natural gas provides base-load power and is a flexible backup for renewable energy EU electricity sector decarbonisation: getting on track towards 2050 Now (2012) 2012 Emissions: tonnes Future (2030) 2030 Gas Coal Other Nuclear Renewables Gas Coal Other Nuclear Renewables Emissions: 605 tonnes Sources: IHS Cera, Statoil

11 The role of gas in the European energy mix in 2030

12 Greenhouse gas emissions per unit in various petroleum provinces (kg carbon dioxide equivalent per barrel of oil equivalent produced) Production by the Norwegian oil and gas sector is the cleanest in the world [because of] a high recovery factor and environmentally efficient use of both chemicals and energy. [Source: Norwegian Oil and Gas environment report 2015] Sources: IOGP 2013 and Norwegian Oil and Gas 2013

13 More than NOK 260 billion has been invested so far the system s technical condition is good, and it is very flexible and well positioned in relation to key parts of the European market

14 The Norsea Gas Terminal has been in operation for more than 35 years. A new terminal has been built to ensure safe and reliable operation Gassco Emden project Investment decision Q4 2012, start-up Q Investment about NOK 6 billion (roughly EUR 750 million) 14

15 Kårstø 30 years old Nye prosjekter

16 The Norwegian continental shelf three petroleum provinces The North Sea - still going strong The Norwegian Sea - new and exciting projects The Barents Sea - the emerging area Source: NPD

17 Large gas resources on the NCS The Norwegian Sea (1,1 TCM) The Barents Sea (1 TCM) 20 %7 % 42 % 37 % 21 % 73 % The North Sea (1,8 TCM) Remaining gas resources by area (4 TCM) 13 % 7 % 80 % Barents Sea 26 % North Sea 46 % Resources in existing fields Discoveries Undiscovered Norwegian Sea 28 % Source: NPD /MPE

18 Outlook towards 2035 and beyond Uncertainty in gas resource estimate Beyond mrd Sm³ > 2000 mrd Sm³ Source: MPE

19 Future infrastructure development Current system Consolidation of Southern system - Current pipeline export capacity deemed sufficient for future needs However, continued focus on strengthening the system upstream Gas exports from the Barents Sea Barents Sea Gas Infrastructure (BSGI) study to evaluate and facilitate an increase in gas export capacity from the Barents Sea report from BSGI: new infrastructure is economic Challenging commercial decision LNG and pipeline are main alternatives.

20 A high level of costs combined with the fall in oil and gas prices has strengthened the profitability challenges Source: NPD

21 What do you see?

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