Norway Doubles Down on Oil and Gas
After hitting record highs this year, Norway’s oil and gas investment is expected to grow even higher in 2025. Greater development activity on new projects and the cost of inflation have contributed heavily to the increase in Norway’s oil and gas investment in 2024. Norway’s oil and gas investment is expected to total around $22.9 billion this year, marking an all-time high, according to the country’s statistics office. The previous record was $20.4 billion in 2014 when oil prices were very high and companies were still spending heavily on new oil and gas projects. The increase in investment supported new exploration activity, pipeline transportation, and shutdown and removal. The Scandinavian oil superpower is expected to continue investing heavily in fossil fuels in the coming years. Oil and gas companies operating in Norway expect to invest an estimated $24.68 billion in 2025, the industry association Offshore Norge announced in December. The group surveyed 14 companies, including Equinor, Aker, Vår Energi, ConocoPhillips, and Shell, representing almost the entirety of the country’s oil and gas output. Companies plan to commence drilling on 45 exploration wells in Norwegian waters in 2025, an increase from 41 this year and the highest level since 2019. The increase in new exploration projects reflects the growth in demand for natural gas from Norway, following the Russian invasion of Ukraine and subsequent sanctions on Russian oil. Norway is Western Europe’s largest oil and gas producer, with an output of more than 4 million bpd, and the government aims to continue increasing production for several decades. In December, Vår Energi and Equinor announced they had made a new oil discovery at their Cerisa exploration well near an operational asset in the Barents Sea. The operators estimate the discovery holds between 1.3 and 4.8 million standard cubic meters of recoverable oil equivalent. This marked the fourth find in a row in the region. Alongside previous discoveries in Gjøa North and Ofelia/Kyrre, Cerisa could be tied into the Gjøa field using existing infrastructure in the area. This would provide combined estimated gross recoverable resources of up to 110 MMboe. In addition to new exploration activities in Norway’s waters, Equinor also announced plans in December for a new 50/50 joint venture with Shell that will see the merging of their U.K. fossil fuel assets to create the largest independent oil and gas producer in the U.K. North Sea. The two companies announced in a joint statement that the new venture will help “sustain domestic oil and gas production and security of energy supply in the U.K.” The statement went on to say, “With the once prolific basin now maturing and production naturally declining, the combination of portfolios and expertise will allow continued economic recovery of this vital U.K. resource.” Norway has justified its oil and gas expansion by investing in ‘low-carbon’ oil projects, which incorporate decarbonization techniques, as well as through its heavy investment in green energy projects. Norway is now the largest and lowest emissions supplier of oil and gas in Europe. This is largely thanks to the electrification of the country’s upstream operations, using Norway’s extensive hydropower. By 2026, Wood Mackenzie forecasts that over 60 percent of Norwegian production will be electrified. New energy market intelligence research from Rystad’s Palzor Shenga and Elliot Busby suggests that the electrification of fossil fuel operations can significantly reduce upstream oil and gas emissions. The research shows that over 80 percent of emissions generated from upstream oil and gas production facilities can be cut by using electricity from renewable resources or natural gas that would otherwise be flared. Shenga, the vice president of upstream research at Rystad, stated, “As the world confronts the pressing issue of climate change, the oil and gas industry is under increasing pressure to minimize its carbon footprint and align its practices with global sustainability objectives. Where it’s possible and economically viable, electrification has great potential to lower the industry’s emissions while maintaining production output.” Norway has invested heavily in renewable energy in recent years. Its grid runs almost entirely on green energy sources, and it has also funded projects in other parts of the world. For example, in June Norway’s Sovereign Wealth Fund purchased a $418 million stake in the 573 MW U.K. wind farm Race Bank. The Norwegian Investment Fund for Developing Countries also announced an investment of $19.9 million in three wind farms with a total capacity of 420 MW in South Africa, to be built by EDF Renewables. Nonetheless, many question whether Norway should be seen as a climate hero or as a carbon villain. The International Energy Agency has repeatedly said that further fossil fuel exploration is not compatible with its scenarios for reaching net zero emissions by 2050, meaning that Norway’s oil and gas investment is at odds with its aims for a green transition, despite its decarbonization and carbon offset efforts. Yet it seems that Norway wants to have its cake and eat it by continuing to invest heavily in oil and gas while also providing significant funding for decarbonization and a green transition.
India’s operational natural gas pipeline expands by 62.6%, development of 10,805 km under execution: Ministry
The length of operational natural gas pipeline in the country has increased from 15,340 kilometres (Kms) in 2014 to 24,945 Kms, a whopping 62.6 per cent as of September 10, 2024, the Ministry of Petroleum & Natural Gas said in its year-end review of the last year. The ministry stated that the development of about 10,805 km of natural gas pipeline is under execution. With the completion of these pipelines authorised by The Petroleum and Natural Gas Regulatory Board (PNGRB), the national gas grid would be completed and would connect all major demand and supply centres in India, the ministry stated. The move will ensure easy availability of natural gas across all regions and also help to achieve uniform economic and social progress. On January 7, the ministry stated that PNGRB has amended PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to Unified Tariff for natural gas pipelines with a mission of “One Nation, One Grid and One tariff.” PNGRB has notified a levelized unified tariff of Rs 80.97/MMBTU w.e.f. June 1, 2024 and created three tariff zones for the unified tariff, where the first zone is up to a distance of 300 km from the gas source, the second zone is 300-1200 km, and the third zone is beyond 1200 km. The national gas grid covers all the interconnected pipeline networks owned and operated by entities, viz., Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, GAIL (India) Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited, Gujarat Gas Limited, Reliance Gas Pipelines Limited, GSPL India Gasnet Limited and GSPL India Transco Limited. The reform will especially benefit the consumers located in the far-flung areas where currently the additive tariff is applicable and facilitate the development of gas markets and the vision of the government to increase the gas utilisation in the country, the ministry stated. PNGRB has authorised 307 geographical areas for the development of City Gas Distribution (CGD) infrastructure with a potential coverage of about 100 per cent of the country’s area and 100 per cent of the population. As of September 30, 2024, the total number of PNG (D) connections and CNG stations in the country was 13.6 million and 7259, respectively. The ministry added that to cater to the growing demand of the CGD sector and to protect the common people from price volatility, the government has released new CGD sector gas allocation guidelines wherein the allocation of the PNG (domestic) segment was increased (i.e., 105 percent of PNGD consumption in the previous quarter) and the balance available volume is to be supplied to the CNG (T) segment on a prorate basis.
NTPC’s clean energy arm to build $21 billion green hydrogen hub
The clean energy unit of NTPC Ltd., India’s largest thermal power producer, is developing a green hydrogen hub at an estimated cost of Rs 1.8 trillion ($21 billion) as the country seeks to add more carbon-free fuel to meet its needs. NTPC Green Energy Ltd. is developing the project at Pudimadaka, near the city of Visakhapatnam, in the southern state of Andhra Pradesh. This is the first such project under India’s National Green Hydrogen Mission, a government statement said Monday. Prime Minister Narendra Modi will lay the foundation stone for the project on Jan. 8, the statement said. Green hydrogen is produced by using renewable energy to split hydrogen and oxygen atoms in water. India aims to lift green hydrogen production to 5 million tons a year by 2030 from almost zero currently under a strategy to decarbonize heavy industries — including refineries and steel mills — and to become a major supplier of the fuel to global markets. The goal is being championed by state energy giants, such as NTPC as well as billionaires Gautam Adani and Mukesh Ambani.
PNGRB proposes uniform insurance coverage for PNG and CNG consumers
The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed a uniform insurance policy for piped natural gas (PNG) and compressed natural gas (CNG) consumers, comparable to the insurance coverage provided to LPG users. This proposal was discussed during an open house meeting held on December 20, 2024, with participation from eight city gas distribution (CGD) entities and other stakeholders. e PNGRB emphasized the growing need for safety and risk coverage as PNG usage expands across India. With over 10 million PNG connections and more than 5,000 CNG stations as of November 2024, the sector is experiencing significant growth. “With the rapid shift of LPG consumers to PNG due to growing infrastructure, it is essential that PNG consumers receive similar insurance benefits,” said Lt Col Kumar Abhishek, Director (CP & CGD), PNGRB. Currently, insurance coverage in the CGD sector varies among entities. HPCL highlighted its existing public liability insurance for employees at CNG stations, supplemented by contractors’ policies. AG&P Pratham outlined a comprehensive general insurance framework covering risks such as gas leaks and equipment failures, while Indian Oil Adani Gas Pvt. Ltd. stated that it maintains an insurance cover of ₹200 milion under Public Liability (PL) and Commercial General Liability (CGL) policies. Adani Total Gas Ltd. reported a premium of ₹250 million for its PL and CGL policies, noting the need for a collaborative approach to reduce costs and extend coverage.