Norway Oil and Gas Downstream Market - Growth, Trends, and Forecasts (2020 - 2025)
The market is segmented by Process Type (Refineries and Petrochemicals Plants)
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The oil and gas downstream market in Norway is expected to grow at a CAGR of more than 1.86% during the forecast period of 2020 – 2025. Increasing consumption of petroleum products is expected to boost the demand for the Norway oil and gas downstream market during the forecast period. However, a decrease in the production of oil along with the high volatility of oil prices is expected to restrain the market in the period.
Refining capacity is expected to remain stagnant in the country due to no new refinery being proposed or any existing facility being expanded as of 2019. The government has also pushed towards decreasing dependence of oil and gas, which has further lead to stagnation of the market.
Increasing the need to decrease the sulfur content in the oil to comply with the EU guidelines has lead to the requirement of better desulfurization plants all over Europe. A further requirement in the reduction of sulfur content is expected to act as an opportunity for the market players in the country.
Increasing oil consumption is expected to drive the market as the refineries are expected to be used at a higher throughput to refine the required amount of oil for the country, which may eventually lead to an increase in the investments in the market.
Scope of the report
The Norway oil and gas downstream market report includes:
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Key Market Trends
Refining Capacity to Remain Stagnant
The refining capacity, in the country, has remained stagnant in the 2015 - 2018 period at 342 thousand barrels per day. This is due to no new refining capacity being added to the country from investments.
Norway has two major refining facilities: the 120,000–b/d refinery at Slagentangen, operated by ExxonMobil, and the almost 240,000–b/d Mongstad plant, operated by Equinor. Most of the output from both refineries are exported, and Norway is an important supplier of gasoline and diesel fuel to the European Union
The refining throughput in the country has increased slightly, by 1.7%, to 286 thousand barrels per day (kb/d), in 2018 from 281 kb/d, in 2017. The increase in throughput is expected to positively impact the growth of the market.
Therefore, the refining capacity in the country is expected to remain stagnant in the forecast period as there is very little new investment in the market.
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Increasing Consumption of Oil to Drive the Market
Oil consumption in the country, increased, by 3.3%, from 9.8 million tonnes, in 2017 to 10.1 million tonnes, in 2018. Natural gas consumption, in the country, remained stagnant, at 3.9 million tonnes oil equivalent, in the 2017 - 2018 period. An increase in the consumption of oil is expected to aid in the growth of the industry.
The Mongstad refinery is the largest in Norway, and medium-sized from a European perspective. Most of the refinery’s production consists of petrol, diesel, and aviation fuel. Enough gasoline is produced here to cover around four times Norway’s annual consumption. Approximately 75% of the total production is exported.
Tjeldbergodden industrial facility at Nordmore, Norway, with the production capacity of around 900,000 tonnes of methanol per year, is the largest methanol plant in Europe. Petrochemical plants have a broad base in the country and are expected to increase in the forecast period.
Therefore, Norway oil and gas downstream market is expected to grow in the forecast period owing to the increase in the consumption of oil in the country.
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The Norway oil and gas downstream market is consolidated. Some of the major companies include EquinorASA, Royal Dutch Shell PLC, and Exxon Mobil Corporation