As war stems Russian gas, Norway’s Equinor gains outsized market impact: Bloomberg

By Andrew Blackman - May 14, 2024
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A view of Equinor’s LNG facility in Melkøya, outside Hammerfest, Norway on January 31, 2023. (Ole Berg-Rusten / NTB via Reuters / File Photo)

As a result of the war in Ukraine, Norwegian energy giant Equinor ASA has succeeded in replacing Russia’s Gazprom PJSC as the biggest supplier of gas to the European Union, Bloomberg reports.

  • The Stavanger-based company now supplies 30% of the EU’s gas, raising questions about whether European leaders are, once again, relying too heavily on a single supplier.
  • The idea that gas will around for the foreseeable future has enhanced Norway’s role in securing Europe’s energy resources. That has helped to dampen criticism within Europe that the country charges more for its gas than Russia does.
  • Norway’s new role as Europe’s biggest gas supplier has been very profitable,  but it has called into question the country’s green future. While Norway is a leader in initiatives like the transition to electric vehicles, the surge in demand for gas has resulted in financial resources and talent being redirected into the oil and gas industry.
  • In recent months, Equinor has been striving to increase its capacity and educe bottlenecks. The government’s message to the rest of Europe is that Norway will be a “stable and long-term supplier of energy” for decades to come.