FT: Statoil warns of political danger to gas

Europe’s second-largest supplier of natural gas has warned that future investment in new production is at risk because of political uncertainty over the role of gas in the continent’s power generation sector.

Statoil, the oil company majority owned by the Norwegian government, has significantly increased gas sales in Europe in recent years, taking market share from Gazprom, the Russian gas giant, which has in the past cut off supply to pipelines that feed western Europe.

However, Rune Bjørnson, senior vice-president for natural gas at Statoil, told the Financial Times: “Continued political uncertainty around gas demand in Europe will ultimately have an effect on the willingness of producers, including ourselves, to invest in new gas supplies.”  MORE