Gas pipelines at the limit
Norway makes record profits from war
08/15/2022, 8:12 p.m
After the summer break, the Chancellor’s first trip goes north. As the second largest gas supplier to Germany and the EU, Norway is benefiting from the Russian war of aggression. The country has the largest foreign trade surplus ever, but the pipelines are reaching their limits.
Norway is the second largest gas supplier for Germany and the EU after Russia. The country currently covers more than 30 percent of Germany’s natural gas needs. In the coming months, Norway wants to expand its natural gas supplies to Europe and thus help to make the EU less dependent on Russian gas – but it is also reaching its limits.
From January to April of this year, Norway exported almost 15 billion cubic meters of natural gas to Germany, almost twice as much as in the same period of 2021. The Scandinavian country was thus able to replace part of the imports from Russia. Three out of seven Norwegian export pipelines lead to Germany.
The country is currently delivering more gas to the EU than ever before. After the Russian invasion of Ukraine, the Norwegian Ministry of Energy adjusted the production licenses for three large offshore fields so that even more natural gas can be produced there. However, the production and pipeline capacities are currently being utilized to the full and are reaching their limits.
Energy giant Equinor triples net profit
Norway is also interesting for Germany as a supplier of liquefied natural gas (LNG) – the plant in Hammerfest, northern Norway, produces around 4.7 million tons of LNG a year, and the trend is rising. Germany wants to rent two floating liquid gas terminals from Norway for the import of LNG. They can convert the LPG into gas offshore. The German LNG terminals on land are currently still under construction. Norway and Germany are also currently examining the construction of a pipeline for importing green hydrogen from Norway. Hydrogen is considered a climate-friendly energy of the future.
Norway, which is already one of the richest countries in the world, is enjoying record income from high energy prices. Norwegian energy giant Equinor’s net profit has recently tripled. For the second quarter, the group reported a profit of more than 6.6 billion euros – compared to 1.9 billion euros in the same quarter last year.