Statoil Discovered Gas in the East of Alve field in Norwegian Sea

The increasing discoveries of proved natural gas reserves will surge the demand for Liquefied Natural Gas (LNG) across the region

Norway: Statoil Petroleum AS, discovered proved natural gas reserves in Norwegian Sea. The wells are encountered to have 30 meter and 65 meter of aquiferous sandstone in Garn & Not formations and Ile & Tofte formations, respectively. The company had finished drilling in its two wells namely, Wildcat well and Appraisal well.

The major objective of the Appraisal well was to find gas discovery in the Lysing formation. Wildcat well was vertically drilled to about 3428 m deep and has encountered a total gas column of about 7 m in a Late Cretaceous sandstone layer. Statoil is also looking to collect geological data from Cretaceous sandstone rocks.

TechSci Research depicts that increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years. Increasing urbanization, growing industrialization and rising number of projects related to power, city gas distribution, petrochemical, etc., are expected to positively influence global LNG market during 2016-2025. On the other hand, inadequate pipeline infrastructure is augmenting demand for small scale LNG projects to supply natural gas to key consumers in remote areas, especially in power and industrial sectors.

According to released report of TechSci Research “Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years. In 2015, global LNG export market was dominated by Qatar and Australia, due to huge natural gas reserves and large liquefication capacities in these countries. Increase in spot market purchase is expected to keep LNG prices under check in Asia-Pacific and Europe.