Photo: Image courtesy of Einar Aslaksen - TRY / Equinor ASA

Equinor expects 10 pct natural gas demand growth to 2030

Norwegian energy giant and LNG operator Equinor said its natural gas sales in 2018 totaled around $26 billion, an increase of 29 percent from 2017.

As more countries prepare for the energy transition, Equinor expects global demand to grow by around 10 percent towards 2030, the company said during its gas seminar, providing its long-term market outlook.

“Global energy markets are changing. The world needs more energy, but lower emissions. Natural gas is well positioned to provide secure, competitive and sustainable energy to consumers and industry: Reducing CO2 emissions by 50 percent when replacing coal, providing needed back-up to renewables and offering a long-term solution for the low carbon future if converted to hydrogen,” said Irene Rummelhoff, Equinor’s executive vice president for marketing, midstream and processing.

In addition to its own gas volumes, Equinor markets and sells the volumes of the Norwegian state’s direct financial interests (SDFI). In total, Norwegian gas provides about 25 percent of Europe’s gas.

In an energy scenario consistent with the 2-degree climate target, global gas demand would only be slightly lower than today even in 2050. That entails massive needs for investment in future gas supply in the decades to come, the company said.

In 2018, Equinor sold a total of 100 bcm of gas as changing markets introduce new commercial opportunities on the trading side.

As more liquified natural gas (LNG) and intermittent renewables enter the market, Equinor is aiming to capitalize on increased price volatility, the company said

“The traded gas markets are developing rapidly and a key to success will be agility and ability to respond quickly to price fluctuations. The demand for shorter-dated indices is increasing and our response is to reflect this development in our trading,” noted Tor Martin Anfinnsen, Equinor’s senior vice president for marketing and trading.