Short-Term Production Limited By Poor Demand
BMI View: Norwegian gas production is falling due to poor demand dynamics from major European gas consumers. The country will remain a critical option though for supplementary gas supply to European markets as Europe-Russia relations deteriorate due to new sanctions.
June marked the third consecutive month of natural gas production decline from Norwegian fields. While this fits with the larger seasonal trend of lower gas demand in Europe over the summer months, actual gas production for June is lower than the Norwegian Petroleum Directorate (NPD) forecast. This indicates a designed reduction in output. We expect a similar picture over July, August and September due to the current weakness in European gas consumption.
Little Appetite For Gas
|Norway - Monthly Gas Production (bcm)|