Statoil ASA, Norway’s biggest energy company, canceled plans to build a pipeline tying the Kristin natural-gas field to the planned $4 billion Polarled tube in the Norwegian Sea because of costs and volume uncertainties.
Statoil ASA and Eni SpA are among companies with plans to drill a record number of wells in Norway’s far north this year to help the world’s second-largest gas exporter to sustain output. So far, they’ve struck out.
Gassco AS, Norway’s natural-gas pipeline operator, said the concept for a link from the Luva field in the Norwegian Sea to existing processing facilities at Nyhamna will be selected in the autumn of this year.
Europe may face a shortfall of Norwegian natural gas as soon as 2015 after the country slashed its estimate for undiscovered resources because of a dearth of discoveries from companies such as Royal Dutch Shell Plc .
Royal Dutch Shell Plc’s deepwater appraisal well at the Gro natural-gas discovery indicated the find may be at the lower end of estimates, potentially denting plans for a new production hub in the Norwegian Sea.