LNG

Equinor, the Norwegian energy major, LNG plant owner and pipeline natural gas supplier to Europe, is increasing gas output on the Norwegian Continental Shelf with a gas field joint venture.

Equinor, the Norwegian LNG exporter and main supplier of pipeline natural gas to Europe, reported a 46 percent drop in net income as oil and gas prices declined, with pipeline gas values falling to under $9.50 per million British thermal units.

The North Sea Transition Authority (NSTA), the UK regulator seeking more oil and gas exploration and production in British territorial waters that will affect future import needs for pipeline gas, LNG and oil has offered a total of 24 licences in the second tranche of the 33rd oil and gas licensing round.

Norway’s national energy company Equinor, a main pipeline natural gas and LNG supplier to Europe as well as being a prominent trader, made total tax contributions of over $49 billion in the last tax year, including $1Bln in environmental taxes under the EU Emissions Trading System, as prices surged following Russia’s invasion of Ukraine.

Equinor said it focused on securing safe and reliable delivery of energy and became the largest provider of natural gas to Europe as supplies from Russian supplier Gazprom virtually ended.

“Equinor is dedicated to contributing to progress for the societies where we operate, and paying tax where value is created is an important part of this,” said Equinor Chief Financial Officer Torgrim Reitan.

Special year

“It was also a special year in 2022 in the energy markets with high and volatile prices, followed by substantial tax contributions,” Reitan added.

Equinor group companies contributed with tax, host government entitlements, royalties and fee payments totalling $49.2Bln. Of this, $44.3Bln was paid to Norway, where Equinor has the largest operations.

The company explained that financial results in 2022 were strengthened by the higher prices across energy markets compared with 2021 and with particularly high prices and higher production of gas to Europe.

“Tax payments from Equinor provides governments and authorities with opportunities to increase welfare and strengthen their societies,” said Equinor.

Governance

The Tax Contribution Report provides information about the corporate income tax Equinor paid in countries and locations where it does business.

“The report discloses Equinor’s approach to tax and tax strategy, compliance, and governance,” it added.

Equinor also emphasized that it supported policies promoting the goals of the Paris Agreement and backed a price on carbon emissions as a measure to drive emissions reductions.

“The CO2 tax in Norway has promoted development of technology and solutions to produce oil and gas with lower emissions from operations on the Norwegian Continental Shelf,” said CFO Reitan.

In 2022, Equinor said it paid $1.1 billion in environmental taxes and fees, including carbon quotas within the EU Emissions Trading System.

Equinor of Norway has signed a new agreement starting immediately to supply German utility and LNG market participant RWE with pipeline natural gas.

The world’s largest sovereign wealth fund belonging to Norway, the main pipeline natural gas supplier to the European Union and an LNG producer, reported a loss of almost $34 billion in the third quarter as all asset classes fell in value.

Norwegian energy company Equinor is proceeding with the development of two natural gas fields offshore Brazil at a cost of around $9 billion and the resources will provide about 15 percent of the South American nation’s gas needs when the project comes on stream.

Norwegian companies Höegh LNG and Aker BP have entered a strategic partnership to develop a carbon transport and storage offering for industrial carbon-dioxide emitters in Northern Europe.

Norway’s Equinor, an LNG supplier to the European Union and which has enabled some of the replacement of pipeline natural gas to Europe in the 18 months, reported a drop in second-quarter profits and revenues even as delivered volumes increased amid LNG and gas terminal incidents and shutdowns.

Norway’s Equinor has received approval for the development of three more fields in the Norwegian Continental Shelf to supply Europe, including the fast-track Irpa natural gas field to supply several million UK households with gas for seven years in competition to LNG cargoes.