By Nora Buli
OSLO (Reuters) -Norway's export of natural gas via pipelines to Europe hit an all-time high in December but still declined by 6.7% overall in 2023 following lengthy maintenance outages, pipeline system operator Gassco said on Wednesday.
"December was a fantastic month when it comes to production from the Norwegian continental shelf," Alfred Skaar Hansen, Gassco's senior vice president for system operation told Reuters.
Norway in 2022 overtook Russia as Europe's biggest source of gas as Moscow cut supplies amid the war in Ukraine, increasing the focus on the security and reliability of the Norwegian energy industry.
In total, Gassco delivered 109.1 billion cubic metres (bcm) of gas through its 8,800-km (5,468-mile) pipeline network in 2023, down from 116.9 bcm a year prior, it told Reuters.
The full-year volume for 2023 had not previously been reported.
Gassco had anticipated more extensive maintenance in 2023 after some deferrals to help run its network and export terminals at close to capacity in the previous year.
Pipeline gas supply to Europe between January and August had dropped 6.4% it said previously, and Norway's natural gas output hit a four-year low in September.
However, some of the work in 2023 also sought to increase capacity at the Kollsnes processing plant, which is now paying dividends, Hansen said.
Deliveries in December set a new monthly record of 11.1 bcm, up from the previous high of 10.9 bcm in January 2017, due to stable production, good availability of processing facilities and steadfast demand.
Europe's demand for natural gas is expected to remain high in 2024, with Gassco's system ready to handle the expected volumes and maintain the new, higher capacity, Hansen said.
"I'll try not to jinx it, but there is nothing that we see that is in the way of setting a new record for delivery. So hopefully it's not going to be the transportation system that will be getting in the way," he added.
Norway primarily pipes its gas to receiving terminals in Britain, Germany, France and Belgium, and to Poland via Denmark.
State-controlled Equinor is Norway's single biggest natural gas producer.
RECORD SUPPLY TO GERMANY
Deliveries to Germany rose in 2023 to an all-time high of 56.2 bcm from 55.6 bcm a year earlier, helped by a new connection to Denmark which lifted the overall export capacity.
"What we see now is when we add up everything to Denmark and Germany, the sum is higher than it was for Germany alone," Hansen said.
Exports to France meanwhile fell by 22.5% to 13.8 bcm last year, while deliveries to Belgium were down 3.8% at 15 bcm, Gassco said.
Supplies to Britain fell by 13.6% to 24.1 bcm.