Europe’s fuel market will stay tight in 2023 | Popgen Tech

ANN/THE STAR – Europe’s pure fuel market is more likely to stay tight this yr as governments battle to replenish storage amid a scarcity of Russian provides, Norway’s largest vitality firm stated.

Equinor ASA’s warning comes regardless of a latest drop in costs – down 50 per cent in a month as an unusually heat winter dampens demand.

Europe’s storage websites are 83 % full, effectively above the seasonal norm, however the area stays uncovered to any additional provide disruptions and is vying with Asia for liquefied pure fuel (LNG) flows.

“The fuel shops are fairly full and it is scorching climate, and that impacts the fuel value, however these shops need to be stuffed up this yr with much less Russian fuel accessible,” Equinor CEO Anders Opedal stated in an interview. “We’ll in all probability see a market the place fuel costs fluctuate rather a lot.”

Benchmark fuel futures rose as a lot as 5.7 % on Thursday, recouping a few of Wednesday’s 10 % loss.

The volatility underscores merchants’ issues that Europe is essentially wanting fuel for the subsequent few years, with no main new LNG export initiatives beginning globally within the close to time period.

Norway has develop into the area’s largest fuel provider after Russia’s shipments fell within the wake of the state of affairs in Ukraine.

The Norwegian authorities stated flows this yr can be little modified from 2022, when the nation exported 122 billion cubic meters of the gas. Manufacturing ranges are more likely to stay the identical for the subsequent 4 to 5 years, it stated in an announcement.

Regardless of elevated demand for Norwegian fuel, Equinor has no intention of suspending deliberate subject upkeep, in accordance with Opedal.

“Now we have saved to our upkeep schedule on an annual foundation and we are going to proceed to take action in 2024 and 2025 as a result of safety of provide comes first,” he stated.

“If we do not persist with our upkeep schedule, we might find yourself with an interruption in fuel provides to Europe and that is not what anyone needs.”