The Norwegian government has reached an agreement to purchase the majority of the natural gas export network from private companies, the Energy Ministry announced on Tuesday.
Norway, Western Europe’s largest oil and gas producer, has been working on plans since 2023 to fully take control of the gas export network, which it views as a vital national asset. The government began negotiations last year with the private companies involved in the three joint ventures that operate the network: Gassled, Nyhamna, and Polarled. The goal is to secure full state ownership before key concessions expire in 2028.
The government has now finalized agreements with seven companies—Equinor, Shell, CapeOmega, Hav Energy, Silex Gas Norway, Orlen, and ConocoPhillips—to buy their stakes in the network’s key infrastructure for a total of $1.64 billion (18.1 billion Norwegian crowns). The Energy Ministry stated that the purchase will not have a financial impact on the state, describing it as “value-neutral.”
However, not all companies have agreed to sell. North Sea Gas Infrastructure AS and M Vest Energy AS declined the state’s offer for their stakes in Nyhamna and Polarled, respectively. Despite this, the government remains focused on achieving full control of the Nyhamna and Polarled joint ventures.
“The state aims to take over the remaining interests in these two ventures either when the license periods expire or through an earlier agreement,” the Ministry said.
The government justifies the takeover as a way to ensure efficient management of gas resources, including maintaining low tariffs, reliable capacity, and regular operation of the infrastructure. This, it says, will maximize the value created from Norway’s petroleum resources.
With Russian gas supplies disrupted due to the invasion of Ukraine, Norway has become Europe’s largest natural gas supplier.
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