IGU: New investments in Norway are not enough to stabilize the European gas market

Although gas prices on the European market have fallen from the record highs reached in 2022 over the past two years, the market remains volatile. Norway’s plans for extensive investment to maintain strong gas production offer some reassurance. But according to the International Gas Union (IGU), now is no time to ease up.

In recent years, Norway has approved extensive investment in extraction infrastructure. The Norwegian energy giant Equinor also confirmed to Montel its plans to maintain strong investment in North Sea production. The company expects gas prices on European markets to remain at current levels for at least another 10 years.

"I am pleased that they are already increasing their new investments to flatten the curve. But we need to do more. I do not think this will be nearly enough for Europe," said Andrea Stegher, vice-president of the International Gas Union (IGU), at the ONS conference in Stavanger, Norway.

According to Stegher, further investment is needed if Europe is to avoid sharp price spikes. Otherwise, he said, the market could once again fall into a state of underinvestment, based on the mistaken belief that energy consumption will not grow.

"We must avoid the belief that underinvestment is a good thing because demand will not grow," Stegher added.

According to Montel, the union presented its report on the global gas market in Stavanger, forecasting growth in gas consumption in Europe. The union expects European consumption to rise by around 1% this year, for the first time since 2021. Consumption is expected to grow not only in the household sector but also in industry.

The union also warned, according to the news site, that with global gas consumption currently growing at an estimated 2.1% this year, around one-fifth of demand could not be met by 2030 without new investment.