* Troll A outage to last until April
* Gas production reduced by 35 mcm/day
* Needs to replace compressor driving unit
OSLO, Jan 25 Norway is set to lose more than 10
percent of its gas production for the rest of the winter as
repairing a faulty compressor at its biggest gas field could
take months, gas system operator Gassco said on Friday.
The outage at Statoil's Troll A field will last
until April 1, beyond an earlier February 4 deadline, and output
until then will be reduced by a maximum of 35 million cubic
metres (mcm) per day, Gassco said on its website.
The outage, which started on Sunday, was extended due to
uncertainty regarding replacement of the "compressor driving
unit," it added.
The outage notification lifted UK gas prices, and within-day
gas prices rose 1.15 pence to 66.75 pence per therm following
But traders said the market had over-reacted as supply
margins in Britain were healthy despite the ongoing Troll
"In February and March demand is lower, much lower across
Europe," one gas trader said, referring to the fact less gas was
needed from Norway over the extended outage time anyway.
So far, the drop in flows to Europe has been less than 35
mcm since the outage started on Jan. 21.
"Exports to Europe were between 320 and 330 mcm per day
before that, and this week flows were down to 300-310 mcm," a
Point Carbon analyst said.
Still, the lasting outage will have an impact on the company
revenues and the country's gas output, which reached a record
107.6 billion cubic metres in 2012.
"This will result in a loss of revenue for Statoil and
Petoro, which own the majority at Troll," Bjorn Brochmann, the
head of gas analysis at Thomson Reuters Point Carbon said.
"It will also have a negative impact on Norway's total gas
production as the outage is taking place when the demand is the
highest," he added.
Statoil, which operates the field and holds 30.58 percent
stake, was not immediately available for comment.
Norway meets about 20 percent of Europe's gas needs, and is
the second-largest supplier after Russia's Gazprom.
Troll accounts for about 40 percent of Norway's gas output.
State-owned holding firm Petoro owns a 56 percent stake in
the production license, and other partners include Shell
with 8.1 percent, Total with 3.69 percent and
ConocoPhillips with 1.62 percent.