Equinor Norwegian gas output up on year in 2024

: Crude oil, Electricity, Emissions, Natural gas
25/02/05

Norwegian state-controlled Equinor's gas output on the Norwegian continental shelf (NCS) edged up on the year, driven by record-high output from the giant Troll field and fewer unplanned outages at NCS assets, the firm said on Wednesday.

The firm's Norwegian gas output rose by 4pc on the year to 758,000 b/d of oil equivalent (boe/d) or 107mn m³/d in 2024. This was driven by "strong contributions" from the Troll and Johan Sverdrup fields, Equinor said. Gas production from Troll — in which Equinor holds a 31pc stake — reached an all-time high last year at roughly 116mn m³/d, the Norwegian producer has said. And there were fewer "unplanned losses" on the NCS last year than in 2023, Equinor said.

The firm was the largest producer on the NCS in 2023, accounting for more than a third of total gas output on the shelf, the latest available data from the Norwegian Offshore Directorate show.

Equinor's global gas output rose by 2pc to 985,000 boe/d or 139mn m³/d last year. But the firm's combined oil and gas global output was slightly lower in 2024, with a small increase in gas production insufficient to offset lower liquids output. Equinor's equity liquids production was 1.08mn boe/d in 2024, down by 3pc on the year.

Equinor expects "more than 10pc growth from 2024-27" in oil and gas production, reaching a peak at 2.3mn boe/d in 2027. And the firm estimated that hydrocarbons output would grow by 4pc from 2024 to 2025.

Equinor's reported Norwegian gas prices dropped by 22pc on the year to $9.47/mn Btu, or €31.01/MWh, in 2024, using Wednesday's exchange rate. And the average reported price for its US gas decreased by 4pc to $1.70/mn Btu, or €5.57/MWh.

Equinor made a profit of $8.83bn in 2024, down by 26pc on the year. Profit was $1.99bn in the fourth quarter, 23pc lower on the year.

The company has cut its 2030 expected renewables capacity to 10-12GW, from 12-16GW, noting that the pace of the energy transition is slower in some markets. It did not give a new target for capital expenditure allocation to this sector. Equinor also modified some net carbon intensity goals, setting ranges rather than absolute targets.

By Georgia Gratton and Jana Cervinkova

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25/03/21

Low snowpack, rain may lift Italian summer power prices

London, 21 March (Argus) — Low snowpack and hydro reserves in Italy may increase the call on gas-fired power plants this summer, likely supporting power prices in days when renewable generation is weakest. Hydro generation from run-of-river installations, pumped-storage plants and hydroelectric reserves accounted for almost 20pc of the power mix on average over 2020-24 in the third quarter — the second-highest share after the second quarter at 22.2pc — compared with gas-fired generation covering 45pc. But prevailing conditions suggest that without unusually wet weather this summer, Italian rivers could be drier than normal, limiting scope for hydro output and potentially opening more space for gas in the power mix, driving up electricity prices. Snow water equivalent — or the estimated water content of snow — moved back to a deficit to last year's levels on 23 February after showing signs of improvement over the first three weeks of the month, according to Italian meteorological association Cima. Snowpack was at a deficit of 57pc to the 2011-23 average as of 8 March, narrowing slightly compared with a 58pc deficit around the same time in February. The deficit in the Po basin, which accounts for almost half of Italy's snow water resource, is currently at a 44pc deficit to the seasonal norm, Cima data show. In the Apennines, the Tiber basin is at a 95pc deficit to the long-term average, marking the worst balance of the last 13 years. And hydro reserves have been at a consistent deficit to last year since January and moved to a deficit to the five-year norm in the middle of February. Rainfall in Malpensa and Paganella, in the north of the country, was at an average deficit of almost 2 mm/d and 1.6 mm/d, respectively, to the seasonal norm over November and December last year. While precipitation picked up in January and moved to a surplus to the norm of 1.9 mm/d in Malpensa and 1.4 mm/d in Paganella, minimum temperatures were 1.6°C above the long-term average in Milan, reducing snow accumulation. The latest data show that hydro reserves have picked up for the first time this year in week 11, reaching 2.1TWh and narrowing their deficit to the 2020-24 average to 0.8pc compared with 5.2pc a week earlier. Still, they remain 6.6pc below last year, with the deficit standing even wider at 9.1pc, when compared with the 2015-24 average. Looking ahead, forecasts indicate that minimum temperatures in Milan will hold around 2°C above the 10-year norm until the end of April, possibly leading some snowmelt to support run-of-river generation early in the second quarter, when power demand is typically at its lowest. But this would also leave less snow to melt later in the summer, when cooling demand peaks and drives up overall demand for electricity. While solar capacity increased steadily by over 500MW a month last year, the share of the power mix covered by solar output in the third quarter of 2024 remained almost unchanged from the same period in 2023. Assuming a similar monthly growth in photovoltaic (PV) capacity this year, the solar load factor is expected to increase by 1.8 percentage points to 17.8pc in the third quarter of 2025 on the year. This means that even if solar capacity and output continue growing, it may not be enough to offset a lack of hydro generation in the third quarter of this year, and thermal generation may still need to cover a significant amount of residual demand. The third quarter of 2025 has averaged €135.85/MWh ($146.83/MWh) so far this quarter, well above an average €91.60/MWh seen over the same period last year. Clean spark spreads for 55pc-efficient gas-fired units for the third quarter of 2025 have averaged around €19.60/MWh since the start of the year, compared with an average of €15.50/MWh over the same time last year. As solar and wind capacity is set to increase over the coming years to reach a national target of 110GW by 2030, renewable output will cover an increasing share of Italian electricity demand — estimated to reach 335TWh in 2028. Thermal plants may become less economically viable and will likely be decommissioned unless they are kept operating through ancillary services. But turning on gas-fired plants from cold and with a stop-start operation would lead to exaggerated costs and higher maintenance prices, Argus heard on the sidelines of the KEY25 Energy Transition Expo in Rimini earlier this month. This could lead to electricity prices spiking in periods of scarce hydro availability, as hydro-run-of river is Italy's largest single source of renewable generation, accounting for 17pc of the power mix last year compared with less than 5pc of hydro-pumped storage and reservoirs. By Ilenia Reale Italian hydro stocks TWh Gas and hydro output, hydro reserves GW, TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's Simcoa may buy carbon credits until 2028

25/03/21

Australia's Simcoa may buy carbon credits until 2028

Sydney, 21 March (Argus) — Australia's silicon producer Simcoa will likely need to buy and surrender Australian Carbon Credit Units (ACCUs) until 2028 for safeguard mechanism compliance obligations before it completes a key decarbonisation project, it told Argus today. The project was awarded federal funds on 20 March. Australia's federal Labor government granted Simcoa A$39.8mn ($25mn) under its Powering the Regions Fund (PRF) to expand charcoal production at its Wellesley facility in Western Australia (WA) and remove the use of coal in silicon production. The project is expected to reduce the company's scope 1 emissions by around 90pc, or approximately 100,000 t/yr of CO2 equivalent (CO2e). Simcoa is Australia's only silicon manufacturer, which is a key component of solar panels. The funding will help maintain silicon manufacturing capability in the country in addition to cutting emissions, energy minister Chris Bowen said. The company currently uses 35,000 t/yr of metallurgical low ash coal in its operations, and anticipates usage will drop to zero after it doubles its charcoal production capacity by 25,000 t/yr to 50,000 t/yr. The completion date for the expansion is not expected before 2028. The firm may continue to buy [ACCUs] as it must use coal as a reducing agent for part of its production for calendar years 2025-27, or until the expansion project can be commissioned, the company told Argus on 21 March. Simcoa surrendered 22,178 ACCUs in the July 2022-June 2023 compliance year as it reported scope 1 emissions of 122,178t of CO2e with a baseline of 100,000t CO2e at its Kemerton silicon smelter. Figures were lower for the July 2023-June 2024 compliance period, the company said, without disclosing details. Australia's Clean Energy Regulator (CER) will publish 2023-24 safeguard data by 15 April . Simcoa anticipates scope 1 emissions at the Kemerton smelter to be "considerably below" the baseline once the charcoal expansion is completed and could make it eligible to earn and sell safeguard mechanism credits (SMCs), which traded for the first time in late February . "We will take whatever opportunity is available to us," the company said on potentially holding or selling SMCs in future. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Opec+ overproducers outline new compensation plans

25/03/21

Opec+ overproducers outline new compensation plans

London, 21 March (Argus) — Seven Opec+ members have submitted plans to the Opec secretariat detailing how they intend to compensate for producing above their crude production targets since January 2024. The plans show that Iraq, Kazakhstan, Russia, the UAE, Kuwait, Oman and Saudi Arabia will reduce their combined output by an average of 263,000 b/d over the 15 months to June next year (see table) . This is to compensate for exceeding their production targets by a cumulative 4.203mn b/d between January 2024 and February 2025. This figure does not represent a monthly average, but rather the sum of the monthly volumes by which the group's overproducers have surpassed their respective output ceilings. It works out to an average monthly overproduction of 300,000 b/d in the same period. If implemented fully, these compensation related cuts would partly offset a plan by these seven members plus Algeria to return 2.2mn b/d of voluntary production cuts starting in April over 18 months. In fact, the scheduled output increases for April and May would be entirely wiped out. But there is no guarantee the compensation related cuts will be delivered. Some members, Iraq and Kazakhstan in particular, have largely failed to deliver on past commitments to reduce output to below their production targets. By Aydin Calik Opec+ overproduction compensation plan* Iraq Kuwait Saudi Arabia UAE Kazakhstan Oman Russia Total Mar-25 116 15 38 5 25 199 Apr-25 116 8 9 5 53 7 51 249 May-25 135 15 6 10 57 10 76 309 Jun-25 130 23 10 72 12 102 349 Jul-25 120 30 10 66 14 127 367 Aug-25 115 38 10 81 18 152 414 Sep-25 120 27 10 85 20 173 435 Oct-25 120 10 90 13 233 Nov-25 120 20 84 224 Dec-25 120 20 49 189 Jan-26 123 33 39 195 Feb-26 123 33 38 194 Mar-26 123 33 40 196 Apr-26 123 50 38 211 May-26 125 55 42 222 Jun-26 125 56 36 217 Average reduction 262.7 *the amount by which members pledge to produce below their existing targets each month Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada needs more oil pipelines: PM Carney

25/03/20

Canada needs more oil pipelines: PM Carney

Calgary, 20 March (Argus) — Canada needs to build more oil pipelines to reduce its dependence on foreign supplies while opening up new trade corridors for exports, prime minister Mark Carney said today, amid an escalating trade war with the US. "It's about getting things done. It's about getting, yes, getting pipelines built, across this country, so we that can displace imports of foreign oil," Carney said while in Edmonton, Alberta. A US-triggered trade war has sparked an urgent need across Canada to diversify its trading partners and limit the country's reliance on the US. This has lifted public support for getting pipelines and other infrastructure energy projects built. The prime minister envisions the federal government "using all of its power" and new legislation to expedite such projects, adding "additional levers" will be discussed when he meets with provincial premiers on 21 March. "We need to do things that had not been imagined or had not been thought possible, at a speed we haven't seen before," said Carney. "That's the nature of the time." TC Energy's current chief executive along with 13 other executives from the country's largest oil and gas companies urged the federal government this week to declare a "Canadian energy crisis" to expedite infrastructure projects. General election soon Carney is expected to call a general election soon with his Liberal party riding high in the polls. Despite the Liberals' recent track record on energy infrastructure, Carney is looking to appeal to Alberta voters eager for pipelines who typically vote for the rival, pro-oil patch Conservatives. A combined C$280bn ($194bn) of Canadian oil and natural gas projects have been cancelled over the past decade, according to the Canadian Association of Petroleum Producers. Of this, C$164bn in the form of LNG projects, C$63bn in pipeline projects, C$30bn in oil sands projects and C$22bn in refinery projects. TC Energy's 1.1mn b/d Energy East pipeline is commonly referenced by industry as a nation-building project that, proposed in 2013, would have supplied Albertan oil to eastern Canada but was abandoned because of changing regulations. There was still no clear indication of when a decision by the federal government could be obtained when TC Energy cancelled it in 2017. Energy East would have piped oil as far east as Irving Oil's 320,000 b/d refinery in Saint John, New Brunswick, which relies on foreign imports, while also giving shippers an outlet to export to Europe and beyond. Canada imported 490,000 b/d of crude in 2023, according to the Canada Energy Regulator (CER). Of this, 355,000 b/d came from the US, 63,000 b/d from Nigeria and 53,000 b/d from Saudi Arabia. Canada meanwhile produces about 5mn b/d, sending about 80pc of that to the US. Carney's infrastructure push includes the proposed Pathways Alliance project in Alberta, which entails a C$16.5bn carbon capture and storage hub that could remove up to 22mn t/yr of CO2 by 2030. Generally, Carney wants to pursue energy and trade corridors and trade including potentially from Alberta to either the Canada's Arctic coast in Nunavut or to Hudson Bay via Churchill, Manitoba. Or both. The subject of trade and pipelines was front and center during a meeting with Alberta premier Danielle Smith earlier in the day, who has criticized the federal Liberals for years. "Albertans will no longer tolerate the way we've been treated by the federal Liberals over the past 10 years," said Smith in a statement, adding a specific list of demands, including "unfettered oil and gas corridors to the north, east and west". The Nunavut project, called the Grays Bay Road and Port Project, is a proposed deepwater port that would cater to critical mineral exports. The proponent, West Kitikmeot Resources, told Argus earlier this month that it had not yet had discussions with Alberta about developing crude capabilities. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Upper Mississippi River reopens for transit

25/03/20

Upper Mississippi River reopens for transit

Houston, 20 March (Argus) — The first towboat arrived at St Paul, Minnesota, today, marking the start of the 2025 navigation season on the upper Mississippi River, according to the US Army Corps of Engineers (Corps). The Neil N. Diehl passed through Lock 2 at Hastings, Minnesota, with nine barges, crossing into St Paul on 19 March. Tows reaching St Paul signify the unofficial start of the navigation season, as St Paul is the last port to open on the Mississippi River after winter ice thaws each year. This is considered an average start time for the navigation season, which typically opens the third week of March. The first tow to reach St Paul in 2024 arrived on 17 March. The Corps released the final Lake Pepin ice measurements of 17in on 12 March and was unable to take new measurements this week since the ice had melted significantly. Lake Pepin measurements help determine when the ice will be thin enough for barges to transit up river. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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