Rich gas is produced by offshore installations in a comingled stream of different gas components. In Norway, this gas feeds into a complex infrastructure called Gassled, which connects fields with processing plants, export terminals and various markets. Natural gas liquids get separated from methane at processing plants and the resulting dry gas volumes are exported by pipeline to European markets. The value of Norway’s gas exports in 2016 was approximately 170 billion NOK.
WestGass buys rich gas from the point of production at offshore fields. We handle all the associated operations and shipping required to export the volumes from Norway.
Natural gas meets more than 20 % of European energy demand, a quarter of which was supplied from Norway in 2016. Companies involved in the marketing and distribution of natural gas include oil & gas entities, trading organisations, energy producers, retail distributers and financial institutions. Gas is traded at interconnected market hubs, the largest in Europe being the NBP (United Kingdom) and the TTF (Netherlands).
WestGass sells gas to these and other liquid European markets. Our strong network of credible market players allows us to manage our risk exposure through bespoke pricing terms.
Natural gas liquids (NGLs) consist of heavier gas components (ethane, propane, butane, naphtha and condensate) that are typically shipped by vessels after processing onshore. NGLs can be blended into vehicle fuels, or used for cooking, heating and as feedstocks to the petrochemical industry. A total of 10 million tonnes of NGLs were exported from Gassled in 2016. The market for these commodities is global.
WestGass handles its NGLs through a variety of arrangements, namely sales or swaps by means of in-tank transfers at the processing plants or free on board deliveries.
The Gassled transportation system is unique as it provides shippers of dry gas direct access to several markets across North West Europe. In 2016, producers of Norwegian gas spent 27.4 billion NOK (15% of the total value of their gas exports) on capacity tariffs. Capacities are typically booked and paid for based on production forecasts, however actual usage fluctuates depending on daily gas production.
WestGass ensures reliable gas offtake with minimised transportation costs through active capacity management and successful booking strategies.
The European gas markets are made up of national hubs that are physically interlinked by pipelines and supported by storage facilities. The individual markets are characterised by short term price fluctuations and weather related regional demand that is predominantly supplied by pipeline deliveries from indigenous sources, Norway and Russia together with LNG from across the globe.
WestGass adds value to its gas by capturing geographical and time optimisation opportunities in these dynamic markets.
Natural gas production from fields varies twenty-four hours a day throughout the year. Operational excellence is paramount to keep the physical pipeline systems balanced and to avoid costly deferment of oil and gas production. Prompt and precise communication is required between producers, shippers, system operators and commercial counterparties.
WestGass has a team of highly skilled and experienced operators who are available 24/7 to monitor and react to any changes in its portfolio supply or demand.