Norway expects its fuel export costs to drop subsequent 12 months from the 2017 and 2018 ranges as Europe will purchase extra liquefied pure fuel (LNG) from different sources, the Norwegian authorities mentioned in its revised 2018 price range on Tuesday.
Norway—which exports virtually all of the fuel it produces—is the third largest exporter of pure fuel on the planet and provides round 25 % of the fuel demand within the European Union (EU).
Fuel export costs will go up barely this 12 months in comparison with 2017, however will drop in 2019, due to elevated shopping for of LNG cargoes in Europe, Norway’s authorities mentioned as we speak. The long-term fuel export value is anticipated to stabilize at the next stage than the projected value for 2019.
The slight rise in Norway’s 2018 fuel export costs can be attributable to excessive coal costs, diminished fuel storage capability in Europe, and low entry to hydro and nuclear energy, in keeping with the Norwegian authorities.
Norway is competing with Russia for Europe’s no.1 fuel provider, with Russia forward with round one-third of European fuel provides.
About 95 % of Norwegian fuel is transported by way of a community of subsea pipelines to different European nations, whereas about 5 % is exported as LNG by ship from the Melkøya facility in Finnmark. Most Norwegian fuel bought on the European market is delivered to Germany, the UK, Belgium, and France, the place Norwegian fuel accounts for between 20 % and 40 % of complete fuel consumption.
Almost all oil and fuel produced on the Norwegian Continental Shelf is exported, and mixed, oil and fuel exports account for round half of the full worth of Norwegian exports of products. This makes oil and fuel an important export commodities within the Norwegian economic system.
Norway’s fuel manufacturing rose final 12 months for a fourth 12 months in a row, and fuel gross sales hit a report excessive, in keeping with Norwegian Petroleum. Manufacturing is anticipated to stay excessive over the subsequent few years.
By Tsvetana Paraskova for Oilprice.com
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