Equinor ASA EQNR, a leading energy company, announced on Wednesday that production has been resumed at the Troll A platform in the North Sea, per a Reuters report.
After a planned maintenance outage that commenced in August, Troll A is back in business. The platform plays a vital role in gas production from the Troll field, which is Western Europe's largest gas field.
Boasting a staggering capacity of up to 125 million cubic meters per day, Troll A is an essential player in the regional gas supply chain. Any disruption in its production has a direct impact on natural gas prices across Europe. At an energy conference in Norway, a senior executive at Equinor emphasized that a protracted lack of supply in the gas market can lead to sharp spike in prices.
Equinor, the operator, confirmed that production has recommenced and is set to progressively increase to full capacity over the next few days.
According to the data released by infrastructure operator Gassco, gas supply from Troll A to Europe is set to increase significantly in the coming days. The initial ramp-up saw 20 million cubic metres (mcm) of production per day from Monday, and is anticipated to reach the near-maximum output of 119 mcm per day by the coming Monday. These projections suggest a substantial surge in gas availability that could potentially influence gas prices in the European market.
Zacks Rank & Key Pick
Equinor currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy sector are USA Compression Partners, LP USAC and Helix Energy Solutions Group, Inc. HLX, currently sporting a Zacks Rank #1 (Strong Buy), and Core Laboratories Inc CLB, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
USA Compression Partners is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower. USAC has witnessed an upward earnings estimate revision for 2024 in the past 30 days.
Helix Energy Solutionsis an international offshore energy company that provides specialty services to the offshore energy industry, with a focus on its growing well intervention and robotic operations. HLX has witnessed an upward earnings estimate revision for 2023 and 2024 over the past 60 days.
Core Laboratories’ strong presence in the emerging shale plays and its global footprint will provide for steady growth rates going forward. CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from new and existing fields. Core Labs has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
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