Norway has finalised agreements with seven private entities for a Nkr18.1bn ($1.64bn) takeover of a substantial portion of the nation’s gas pipeline network.
This move will place key infrastructure under state control.
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The transaction, which involves around 9,000km of pipelines, according to Reuters, aligns with the government’s objective to maintain low tariffs for gas exporters and ensure profitable, long-term production.
A significant portion of Norway’s gas transportation pipeline network is owned by Gassled, a consortium formed in 2003 by oil companies that were involved in offshore gas production.
The deal, which increases Norway’s stake in the Gassled partnership to 100% from 46.7%, was reached amidst Europe’s shifting energy landscape, although the government insists that recent reductions in Russian gas deliveries did not influence the decision.
The agreement includes major subsea supply routes to Germany, Britain, France and Belgium, and is backdated to 1 January 2024.
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By GlobalDataThe terms were agreed upon with CapeOmega, ConocoPhillips, Equinor, Hav Energy, Orlen, Shell and Silex.
Norway Energy Minister Terje Aasland said: “I am very pleased that we have found a solution resulting in a full state ownership of the large and important Gassled infrastructure.”
Equinor will retain a 5% stake in both the Nyhamna processing plant and the Polarled pipeline, while Shell will sell its remaining 2% stake in Nyhamna, marking its further withdrawal from the Norwegian Continental Shelf.
Despite the broad agreement, North Sea Infrastructure (NSI) and M Vest Energy, stakeholders in Nyhamna and Polarled, respectively, did not accept the offer, maintaining their ownership shares.
The government remains intent on acquiring these interests either at the concession’s end or through a future agreement.
NSI has stated that the offer for its Nyhamna stake was insufficient.
