Equinor expects a decrease in storages and a rise in gas prices next year.

The CEO of Norwegian oil-and-gas producer Equinor stated on Thursday that European gas prices continue to be under pressure because of the rising demand for gas in Asia, and due to concerns about future supplies of Russian gas and LNG.

The weather and temperature will determine the demand for European products. "A normal or cold winter would put upward pressure on the prices," CEO Anders Opedal said to reporters after the company announced its third quarter earnings.

He added that the demand for LNG in Asia is driving prices up, as well as Russian gas imports.

According to the CEO, there's also "considerable uncertainty" about when new LNG projects are going to start.

Opedal stated that "Equinor is a well-positioned company in the gas industry."

Torgrim Reitan, CFO, said that even with a normal Winter, European Gas Storage Sites should be 40% full by April 2025 compared to 60% this year.

Reitan stated that the gas market is still "fragile", despite the fact that storage was almost full before winter.

Gas Infrastructure Europe reports that the European gas storage sites are around 95% full.

LSEG data show that the benchmark front-month gas contract at TTF's Dutch hub reached a ten month high of 42.57 Euros per Megawatt Hour (EUR/MWh), on Thursday. This was due to geopolitical risk.

Earlier on Thursday, Equinor reported a sharper-than-expected 13% decline in third-quarter profit, citing weaker oil prices and lower production. (Reporting and editing by Terje Sollvik, Kirsten Doovan).

(source: Reuters)