Norway's realised gas price continues to rise
London, 17 September (Argus) — The average selling price for Norway's pipeline gas exports rose by 1.8pc on the month in August, extending its premium over Europe's spot markets.
Norway sold its pipeline gas for an average price of €28.90/MWh in August, up by €0.50/MWh on July's selling price and €6.35/MWh higher than in August 2011, official trade statistics show.
And the premium at which Norwegian gas was sold over Europe's spot markets was extended in August. The average selling price was €4.88/MWh higher than the average closing price on the TTF day-ahead market in August and €5.32/MWh above the average NBP price. Norwegian gas was sold in July at €4.07/MWh above the Dutch market and €4.33/MWh higher than the UK market.
Norway's pipeline exports amounted to 7.52bn m³ in August, up marginally on the same month in 2011, but down from the 8.78bn m³ exported in July. The drop was driven by a combination of seasonal maintenance and lower demand in northwest Europe.
Pipeline gas exports amounted to 16.85bn kroner ($2.95bn) last month, down from July's NKr19.67bn. Total gas revenues in August were NKr17.5bn when LNG exports from the Snohvit field in Northern Norway are included, up by NKr3.3bn on the year, but NKr2.8bn less than in July.
The month-on-month drop in exports was driven to a large extent by an 840mn m³, or 37pc, decline in deliveries to the UK. Exports to the Netherlands were 24pc down on the month, while deliveries to Denmark declined by 61pc. Germany remained the largest customer for Norway's pipeline gas, accounting for 35pc of total exports in August, up from 30pc in July. The UK's share declined to 19pc from 26pc in July.
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