Gas market could compensate for slower nuclear build: Statoil VP

According to Platts, speaking at Flame 2011 in Amsterdam, Bjornson said that the devastating March 11 earthquake in Japan and subsequent explosion at the Fukushima 1 nuclear power plant "triggered recognition of the merits of gas-fired power plants in the world."

As an industry, we must grasp the opportunities that come from this," Bjornson added.

Discussing the merits of gas-fired plants, Bjornson said that combined cycle gas turbine plants do not require subsidies in construction, they generate no radioactivity or nuclear waste, and produce lower carbon emissions than coal.

He recognized that the gas industry was continually facing challenges on a European scale, including structural changes in the market and the ramping up of energy policy at the top of the political agenda in many member states.

"Again, Fukushima confirms the volatile nature of EU energy policy," Bjornson said, referring to the shift of the German government away from nuclear power after the earthquake.

Despite the changing atmosphere of governments, Bjornson trusts that with the right pricing signals and policy structure, the North Sea and Norway will help fulfill the UK's and Europe's gas needs "for years to come."

"I am more optimistic of the role of natural gas to meet Europe's energy needs and as a secure energy supply," he said.

He said that Europe is well supplied with natural gas and has an abundance of gas storage facilities.

However, Bjornson highlighted the need to build more interconnectors between member states in Europe to mitigate supply problems in the future and help bring gas from import countries.

"Statoil is working to build the Southern Gas Corridor, where the second phase of the Shah Deniz field is critical," he said.

Gas from Azerbaijan's Shah Deniz field could flow through a "Southern Corridor" route, such as the Statoil-backed TAP pipeline, into Europe.

"I am convinced that the stakeholders will reach an agreement in order to flow gas to Europe from the Caspian," he said.


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