According to Reuters, this year, Norway’s authorities are planning to nationalize the better part of its gas pipeline network.
In 2028, many existing concessions on oil and gas will expire. By this time, Norway’s authorities intend to tighten control over key infrastructures.
The oil and energy ministry said that it would “make use of the right of repatriation at the end of the license period.” As a result, in just five years, the state will own the central parts of the Norwegian gas transport system.
“Norwegian petroleum policy has had its foundation on combined ownership from private companies and the state and has worked well,” Kurt Georgsen, CEO of Silex Gas, said.
Last year, the country increased its oil output by almost 8% and became Europe’s largest supplier of gas. Norway’s income from oil and gas surged to $125 billion amid mounting demand for energy.
Meanwhile, the price of pipelines is constantly rising. The local authorities have spent billions of dollars on the construction of pipelines that transports Norwegian gas to the European Union and the United Kingdom. The gas pipeline network is now owned by Gassled, an organization founded in 2003. The companies involved were producing gas offshore Norway. Later, they reduced or even sold their shares to investment companies.
Currently, Norway owns 46.7% of Gassled via state-owned company Petoro, while another 5% is held by the majority state-owned Equinor (the state’s share is 67%). The ministry supposes that the government will have to compensate other shareholders when transferring ownership of the gas transportation infrastructure.
