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    Norwegian Gas Output Continues Recovery in July

Summary

Production was lower than the forecast level, however.

by: Joseph Murphy

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Norwegian Gas Output Continues Recovery in July

Norwegian gas production grew for the second month in a row in July but lagged slightly behind the forecast, according to data published by the Norwegian Petroleum Directorate (NPD) on August 24.

Daily output during the month averaged 305.6mn m3/day, up 9.3% month on month but still down 1.1% compared with the volume a year earlier. It was also 1.5% under the level forecast.

Norwegian producers have kept back some volumes this year in response to the slump in European gas prices, brought about by the Covid-19 pandemic, a glut in global LNG supply and high gas storage levels.

Source: NPD

Norway's liquids output averaged 2.062mn barrels/day in July, up 11% month on month and 20.2% year on year, as well as 1% above forecast. Government-imposed cuts, aimed at supporting the market's recovery, were eased at the start of July. The Equinor-operated Johan Sverdrup project has been a driving force behind production growth. It came on stream last autumn and is now flowing at a rate of 470,000 b/d.