FINWIRES · TerminalLIVE
FINWIRES

Equinor Pulls Out of Japan Offshore Wind; Eyes 2027 Final Investment Decision on Wisting Field

By

Norwegian energy giant Equinor (EQNR) said that it has decided to completely exit its offshore wind business in Japan and close its Tokyo office by the end of 2026.

Company officials stated the exit follows a strategic reassessment to strengthen its focus on integrated power markets. While ending its local presence, Equinor emphasized that Japan remains an important market.

Equinor and its partners are shifting focus back to home waters, submitting a proposed environmental impact assessment for the Wisting field in the Barents Sea for public consultation the company noted in a separate press release on Thursday.

As the largest undeveloped oil discovery on the Norwegian continental shelf, Wisting holds an estimated recoverable volume of just under 500 million barrels of oil equivalent.

The project remains in its early, maturation phase, with further progress hinging on economic viability and profitability improvements, it stated.

Equinor and its partners plan to lock in a final concept selection by late 2026, targeting a final investment decision by the end of 2027.

Related Articles

Commodities

US Electricity Demand to Rise 39% by 2035 as Grid Constraints Persist, ICF Says

US electricity demand will increase 39% by 2035, but grid capacity and infrastructure constraints will determine where new power loads can connect, ICF International said in a Thursday report.The firm expects peak electricity demand to rise 25% by 2035 from 2026 levels, driven by expanding data centers, industrial growth and electrification. It said the outlook varies significantly across regional power markets.ICF projects electricity demand in the PJM market will grow 43% by 2035, compared with a 14.3% increase in the New York Independent System Operator region during the same period.The report said shrinking reserve margins are raising reliability concerns. ICF estimates the US has only about 26 GW of excess generating capacity above minimum resource adequacy requirements.ICF forecasts 445 GW of new US generation capacity additions between 2026 and 2030. However, it said generation, transmission and distribution projects often take years to permit, finance, interconnect and construct.The firm said timing, rather than the availability of new resources, remains the biggest challenge because many large electricity users need power before new infrastructure is ready.ICF said utilities and transmission planners should better align resource adequacy, transmission capability, distribution capacity and demand-side resources with the location and timing of new electricity demand.The report said developers and investors can improve project viability through earlier coordination on generation, energy storage, grid conditions, project timing and customer load flexibility.ICF said demand-side resources will play a growing role in managing peak demand and supporting grid reliability where infrastructure constraints delay new generation and transmission projects.States can strengthen economic competitiveness through better grid planning, while federal agencies can help speed project delivery by improving permitting, financing, supply chains, workforce development and coordination, according to ICF.

Commodities

US Natural Gas Update: Hotter Weather Forecasts Counter Bearish Inventory Data

US natural gas futures maintained gains in after-hours trading on Thursday as forecasts pointed to above-average temperatures across much of the country next week, despite a larger-than-expected inventory build.The front-month Henry Hub contract and the continuous contract rose 2.70% to $3.308 per million British thermal units.On its second-to-last day as the front-month, July natural gas futures rose 12.2 cents, or 3.8%, to settle at $3.343/MMBtu, their highest close since Feb. 6, according to Reuters.Barchart said prices were sharply higher on expectations of hotter US weather, which could increase natural gas demand from electricity generators for air conditioning.Citing data from The Commodity Weather Group, it said above-average temperatures are expected across the Midwest and Northeast from June 30 to July 4.Earlier on Thursday, the US Energy Information Administration reported natural gas inventories rose by 76 billion cubic feet to 2,835 Bcf in the week ended June 19, topping expectations for a 67 Bcf to 73 Bcf build.Stocks are 49 Bcf below year-ago levels but 152 Bcf above the five-year average of 2,683 Bcf, according to EIA data. The injection briefly pressured prices, with futures sliding to an intraday low of $3.196/MMBtu before recovering.Gelber & Associates said the market is balancing stronger late-June and early-July heat against elevated storage levels. "A +76 Bcf build isn't bearish enough on its own to derail prices, but it keeps the front end tightly tied to weather confirmation," the analysts said.On the supply side, Barchart, citing BNEF data, said US Lower 48 dry natural gas production was a robust 112 Bcf per day, up 3.4% over the year.Lower-48 natural gas demand was 72.9 Bcf/d, down 10.5% over the year. Of that, Celsius Energy put Wednesday's power burn at 37.7 Bcf, up 1.3 Bcf from the day before, but down 6.1% from a year ago.In the export sector, estimated LNG flows to US export terminals were 19.1 Bcf/d, up 0.8% from the previous week, mostly recovering from spring maintenance slowdowns.Meanwhile, FERC approved commissioning activities for Golden Pass LNG's second liquefaction train, keeping the project on track for a Q4 2026 startup.

Commodities

US Crude Stocks Post 9th Straight Weekly Draw as Exports Rise, TPH Energy Says

US commercial crude inventories fell by 6.1 million barrels last week, extending a nine-week streak of inventory draws as Cushing crude stocks dropped to a new five-year low, TPH Energy said in a Thursday note.The inventory decline exceeded market expectations for a 3.6 million-barrel draw and the five-year average draw of 4.4 million barrels.Commercial crude inventories now stand 1% below year-ago levels and 7% below the five-year average after declining 53.6 million barrels over the past nine weeks.Cushing inventories fell by 1.1 million barrels to 19.0 million barrels, dropping below the minimum operational level, TPH Energy said.Higher crude exports helped drive the latest draw despite increases in imports, domestic production and adjustment factors. Crude exports increased by 342,000 b/d, with weekly exports rising 9% from a year earlier and the four-week average climbing 25%.Crude imports rose by 436,000 b/d, domestic production increased by 13,000 b/d to 13.819 million b/d, and the adjustment factor rose by 107,000 b/d.Refinery throughput declined by 81,000 b/d from the previous week but remained 1% above year-ago levels.Ethanol inventories edged up by 0.1 million barrels to a five-year high of 24.6 million barrels, while ethanol production eased week over week but still reached a new five-year high, according to TPH Energy.Light product inventories increased across all major categories. Gasoline inventories rose by 2.1 million barrels, compared with expectations for a 1.1 million-barrel decline, while distillate inventories increased by 3.1 million barrels versus forecasts for a 1.1 million-barrel draw.Jet fuel inventories also increased by 1.3 million barrels as single-week demand softened.TPH Energy said weaker domestic demand and lower net exports contributed to the larger-than-expected builds in gasoline and distillate inventories.The four-week average for total light product demand slipped to 1% below year-ago levels after being 1% above a week earlier. Gasoline demand also weakened, declining to 3% below year-ago levels from 1% below.Distillate demand slowed to 3% above year-ago levels from 5% above, while jet fuel demand improved to 1% above year-ago levels after previously remaining flat.