By Charles Kennedy - Nov 12, 2024
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The Norwegian government has agreed to buy from private companies the majority of the natural gas export network of Western Europe’s biggest oil and gas producer, the Energy Ministry said on Tuesday.
The government laid out plans in 2023 to take full ownership of the gas export network, which it considers an asset of national interest and importance.
The government launched talks last year with the private companies that hold interests in the three joint ventures operating the export network, Gassled, Nyhamna, and Polarled. Norway has sought to take full state ownership over the network before many concessions expire in 2028.
The government has now reached purchase agreements with seven companies to buy their interests in key parts of the infrastructure, for a combined $1.64 billion (18.1 billion Norwegian crowns).
The purchase is considered to be value-neutral for the state of Norway, the energy ministry said.
The government has reached agreements with Equinor, Shell, CapeOmega, Hav Energy, Silex Gas Norway, Orlen, and ConocoPhillips to buy their stakes in the Gassled, Nyhamna, and Polarled joint ventures.
However, agreements have not been reached with all owners in the system. North Sea Gas Infrastructure AS and M Vest Energy AS did not accept the state’s offer for their interests in Nyhamna and Polarled, respectively.
But Norway aims to have full ownership in Nyhamna JV and Polarled JV, too.
“The State aims to take over the remaining interests in these two joint ventures when the license periods expire or through an agreement prior to this,” the Energy Ministry said.
The government’s rationale for the takeover is that “Ensuring low tariffs, right capacity, and high regularity in the gas infrastructure best facilitates good resource management and high-value creation from the petroleum resources on the Norwegian continental shelf.”
Norway is now Europe’s single largest natural gas supplier after Russian deliveries collapsed following Russia’s invasion of Ukraine.
By Charles Kennedy for Oilprice.com
The Norwegian government has agreed to buy from private companies the majority of the natural gas export network of Western Europe’s biggest oil and gas producer, the Energy Ministry said on Tuesday.
The government laid out plans in 2023 to take full ownership of the gas export network, which it considers an asset of national interest and importance.
The government launched talks last year with the private companies that hold interests in the three joint ventures operating the export network, Gassled, Nyhamna, and Polarled. Norway has sought to take full state ownership over the network before many concessions expire in 2028.
The government has now reached purchase agreements with seven companies to buy their interests in key parts of the infrastructure, for a combined $1.64 billion (18.1 billion Norwegian crowns).
The purchase is considered to be value-neutral for the state of Norway, the energy ministry said.
The government has reached agreements with Equinor, Shell, CapeOmega, Hav Energy, Silex Gas Norway, Orlen, and ConocoPhillips to buy their stakes in the Gassled, Nyhamna, and Polarled joint ventures.
However, agreements have not been reached with all owners in the system. North Sea Gas Infrastructure AS and M Vest Energy AS did not accept the state’s offer for their interests in Nyhamna and Polarled, respectively.
But Norway aims to have full ownership in Nyhamna JV and Polarled JV, too.
“The State aims to take over the remaining interests in these two joint ventures when the license periods expire or through an agreement prior to this,” the Energy Ministry said.
The government’s rationale for the takeover is that “Ensuring low tariffs, right capacity, and high regularity in the gas infrastructure best facilitates good resource management and high-value creation from the petroleum resources on the Norwegian continental shelf.”
Norway is now Europe’s single largest natural gas supplier after Russian deliveries collapsed following Russia’s invasion of Ukraine.
By Charles Kennedy for Oilprice.com
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