Iran Conflict Boosts Asia-Pacific Interest in Norwegian Petroleum and LNG Exports
Impact of Gulf Disruptions on Norwegian Energy Exports
By Nora Buli
OSLO, May 6 (Reuters) - Equinor has seen a surge in interest for energy exports out of Norway from customers as far afield as Australia after the Iran war curbed exports of petroleum and liquefied natural gas (LNG) from the Gulf, the energy group said on Wednesday.
Strait of Hormuz Closure and Its Consequences
The conflict has effectively closed the Strait of Hormuz, a choke point for energy exports from producers in the Gulf, especially affecting clients in Asia.
Loss of Oil and Refined Products Supply
The closure has resulted in the loss of 12 million barrels of oil per day and has also hit the supply of refined products such as diesel and jet fuels, Equinor CEO Anders Opedal told reporters after presenting the company's first-quarter earnings.
Equinor's Performance Amid the Crisis
Europe's biggest producer of oil and gas reported its highest quarterly earnings in three years, lifted by high output and rising petroleum prices caused by the war.
Norwegian Export Infrastructure
Equinor operates the Mongstad refinery on Norway's west coast and a liquefied natural gas (LNG) plant in Arctic Hammerfest, typically serving customers in Europe.
Rising Demand from Asia-Pacific Markets
Increased Customer Engagement
"But we see that there is demand from customers in Asia who contact us once a year to maintain their customer relationship. They call twice a week now," Opedal later told Reuters.
New Export Routes and Destinations
Recently, Equinor shipped a cargo of gasoline from Mongstad to Australia, something that had not happened in years, Opedal said.
Interest from Indian Fertiliser Producers
For LNG, there has been increased interest from fertiliser producers in India, the CEO said.
Shipping Data and Logistics
LSEG shipping data showed that the Arctic Lady LNG tanker loaded up at Hammerfest on April 7 and is set to discharge its cargo at the Dahej port on India's west coast on May 12.
Profitability and Shipping Optimization
Equinor said the deliveries remained profitable despite a rise in shipping costs.
"We have a shipping department, and they are very, very smart, making sure that we optimise our shipping fleet," Opedal said.
(Reporting by Nora BuliEditing by Tomasz Janowski)
