OSLO — Norway’s plan to nationalize gas pipelines owned by the Gassled company also includes an additional goal to take over other assets, including at the Nyhamna processing plant, a letter from the Norwegian energy ministry to the owners showed.
In a surprise move, Norway’s government last week announced a nationalization plan that will take effect when many existing Gassled pipeline concessions expire in 2028, but did not say which other assets it would seek to acquire.
Advertisement 2
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Unlimited online access to articles from across Canada with one account.
- Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on.
- Enjoy insights and behind-the-scenes analysis from our award-winning journalists.
- Support local journalists and the next generation of journalists.
- Daily puzzles including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles by Kevin Carmichael, Victoria Wells, Jake Edmiston, Gabriel Friedman and others.
- Daily content from Financial Times, the world’s leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
Financial Post Top Stories
Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Norway has become Europe’s largest supplier following a sharp fall in Russian gas deliveries amid the war in Ukraine. The country’s vast network of pipelines stretch some 9,000 kms (5,600 miles), and is thus a key asset of national interest.
The energy ministry said in a letter to licensees, which was seen by Reuters on Friday, its plan included “other central parts of the Norwegian gas infrastructure that are currently owned by Nyhamna and Polarled, as well as Vestprosess DA.”
Much of Norway’s gas transportation pipeline network is owned by Gassled, a partnership set up in 2003 by oil companies that were producing gas offshore Norway at the time. It cost billions of dollars to build.
In its letter to all licensees, including Shell, ConocoPhillips, Equinor and others, the government said its goal was to have “complete state ownership of Norwegian gas infrastructure.”
Advertisement 3
It named the Nyhamna plant, which processes gas from the Ormen Lange field as well as gas delivered via the Polarled pipeline, as one of the assets it aimed to take over.
The Polarled pipeline itself, completed in 2015, was also on the government’s takeover list, as was Vestprosess, a pipeline and processing system for gas from the Kollsnes and Sture terminals.
“Where takeover possibly requires remuneration, the state’s position is that (this) should be based on the present value of future expected tariffs minus ownership costs,” the letter said.
The ministry will now seek consultation with the licensees on its plans, it added.
Shell, ConocoPhillips and Equinor were not immediately available for comment when contacted by Reuters. (Reporting by Nora Buli, editing by Terje Solsvik and Jane Merriman)
