Rare gases market in Norway

Earlier Report Observations

The Norwegian rare gases market volume grew from 5,054 thousand m³ in 2019 to 5,358 thousand m³ in 2020, while its value declined from $19.2 million to $17.1 million over the same period, likely reflecting shifting prices. This physical volume increase coincided with heightened petroleum production and gas exports from 2020 onward, driven by post-pandemic price spikes and demand. Concurrently, the market's structure evolved as major international companies reduced their share of production on the Norwegian shelf, while mid-sized firms like Aker BP and Sval Energi expanded through acquisitions.

A sharp expansion occurred in 2022, with market volume surging to 12,032 thousand m³ and value reaching $23.6 million. This jump was primarily triggered by Russia's invasion of Ukraine, which cut off Russian gas supplies and elevated Norway's role as a stable European supplier, boosting gas exports by about 8%. Soaring post-pandemic demand and war-induced energy shortages sent gas prices to record highs, elevating the value of rare gases. Industry consolidation continued, exemplified by Aker BP's takeover of Lundin Energy.

In the following years, the market's value continued to rise, reaching $30.3 million by 2024. This was underpinned by sustained high levels of oil and gas production and exports, alongside significant investments in Northern Norway's infrastructure, including carbon capture and storage projects. Debates about potentially halting new oil and gas exploration highlighted the critical importance of Norway's stable energy deliveries to Europe following the crisis.

Production rare gases in Norway

In value, 2018-2021, K $ US

In 2020, Norway's output of rare gases was valued at 13 061 thousand US dollars, representing a 14.8% decrease compared to the previous year.

Annual dynamics of production in Norway in value, 2018-2021, K $ US

In kind, 2018-2021, K m³

In 2020, Norway produced 3 281 thousand cubic meters of rare gases, marking a significant 14.1% reduction from 2019 levels.

Annual dynamics of production in Norway in kind, 2018-2021, K m³

Exports rare gases from Norway

Exports in kind, K m³

The data shows irregular changes, indicating a volatile market environment. The minimum volume was recorded in 2018, while the maximum occurred in 2019 at 3 328 thousand cubic meters, creating a 2.2-fold difference between these years. In 2021, rare gas exports from Norway amounted to 2 110 thousand cubic meters, down 11.1% from the previous year. The largest decline was observed in 2020 at 28.7%, while the largest increase was in 2019 at 116.7%.

Annual dynamics of product's exports from Norway in kind, 2018-2021, K m³

From 2018 to 2021, the structure of exports in kind was dominated by a single market: Sweden, which accounted for 99.5% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Norway in kind, 2018-2021

Exports in value, K $ US

There were noticeable fluctuations in market performance during this period. The minimum value was recorded in 2018, while the maximum was in 2019 at 1 270 thousand US dollars, resulting in a 2-fold variation between these years. In 2021, rare gas exports from Norway totaled 995 thousand US dollars, showing a modest 4.1% drop from the previous year. The largest decline occurred in 2020 at 18.2%, while the largest increase was in 2019 at 98.6%.

Annual dynamics of product's exports from Norway in value, 2018-2021, K $ US

From 2018 to 2021, exports of rare gases from Norway in value terms were almost entirely concentrated in Sweden, with its share reaching 91.7%.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Norway in value, 2018-2021

Imports rare gases to Norway

Imports in kind, K m³

In 2021, foreign rare gas supplies to Norway reached 7 058 thousand cubic meters, showing a sharp 58.6% increase year-over-year. Between 2018 and 2021, imports grew by 83.9%, equating to an annualized rate of 22.5%. The largest decline was recorded in 2020 at 2.4%.

Annual dynamics of product's imports to Norway in kind, 2018-2021, K m³

From 2018 to 2021, Sweden held the dominant position in imports in kind, accounting for 80.0% of total flows, while the remaining share was distributed among various smaller destinations.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Norway in kind, 2018-2021

Imports in value, K $ US

After a two-year decline, rare gas shipments to Norway from abroad increased. In 2021, imports amounted to 5 963 thousand US dollars, up 16.3% from the previous year. Over the period from 2018 to 2021, imports rose by 10%, with a compound annual growth rate of 3.2%. The minimum value was recorded in 2020 at 5 126 thousand US dollars, while the largest decline occurred in 2019 at 4.7%.

Annual dynamics of product's imports to Norway in value, 2018-2021, K $ US

From 2018 to 2021, Sweden (44.3% of imports in value terms), Denmark (10.5%), and Belgium (9.0%) together absorbed 63.8% of total rare gas imports to Norway, making them the main destinations.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Norway in value, 2018-2021