ADVERTISEMENT

Commodities

Equinor CFO Sees Tight European Gas Market Going Into Winter

An Equinor natural gas production facility in Karsto, Norway. (Carina Johansen/Bloomberg)

(Bloomberg) -- Equinor ASA sees a tight European natural gas market going into winter, said Chief Financial Officer Torgrim Reitan.

The fragile balance between supply and demand of the fuel means external factors will have significant sway over the continent’s market, Reitan said in an interview on Bloomberg TV on Wednesday. 

The question of whether transit of Russian gas through Ukraine will continue next year will have an impact on European prices, even though it only affects a small portion of the region’s overall supply, Reitan said. The strength of demand for liquefied natural gas in Asia, particularly China, could also set the price paid in Europe, he said. 

European gas prices have risen in recent days, with traders monitoring the situation in war-torn Ukraine. Parts of Europe are bracing for a complete cut-off of flows from Russia next year once a gas-transit deal between Moscow and Kyiv expires.

Norway provides about 30% of Europe’s natural gas, and Equinor is its largest energy producer. The company remains fully committed to supplying the region through the winter, Reitan said. 

©2024 Bloomberg L.P.