Natural gas is a reliable and highly competitive source of energy. The gas from the Norwegian Continental Shelf is close to largest European gas markets and is produced in a cost-efficient manner. The gas is exported through Gassled, which is a reliable, flexible and integrated subsea pipeline system with landing points in four European countries (United Kingdom, Germany, France and Belgium).

In addition to being cost-efficient and competitive, natural gas is also an attractive source of energy from an environmental perspective with much lower CO2 emissions than coal.

Statoil has a robust gas sales portfolio, and is also a marketer of the Norwegian State’s gas volumes. Traditionally, the majority of Statoil’s gas has been sold under long-term oil indexed contracts to large European gas utility companies and suppliers. In recent years, market liberalization has broken up traditional monopolistic value chains in Europe. As a consequence, Statoil is selling an increasing share of gas in the spot markets and also directly to large end customers. Through commercial negotiations with our counterparts, we have modernized most of our long term contracts, gradually moving away from oil indexation.

Statoil has sales offices for gas in Stavanger (Norway), Brussels (Belgium), London (UK) and Stamford (USA).

Statoil expects the world’s total demand for natural gas to grow by about 30 per cent globally in the coming two decades. This increase is mostly due to increased demand for gas in Asia, especially in China. In Europe – Statoil’s core market – gas demand has gone down in recent years, especially in the power sector where gas is being outcompeted by cheap coal and subsidized renewable energy. Towards and beyond 2020, Statoil expects the demand for gas to power to recover, first of all as a result of tighter European climate policies.