NORWAY SEEKS TO TAKE CONTROL OF NATURAL GAS EXPORTS

The Norwegian government has agreed to buy most of the natural gas export network of Western Europe's largest oil and gas producer from private companies, the Energy Ministry said on Tuesday.

The government has outlined plans for 2023 to take full ownership of the gas export network, which it considers an asset of national interest and importance.

Last year, the government began talks with private companies that hold stakes in three joint ventures that operate the export network: Gassled, Nyhamna and Polarled. Norway aimed to gain full state ownership of the network before many of the concessions expire in 2028.

The government has reached agreements with seven companies to buy their stakes in key parts of the infrastructure for a total of $1.64 billion (18.1 billion Norwegian kroner).

The purchase is considered to be zero-cost for the Norwegian state, the Energy Ministry said.

The government has reached agreements with Equinor, Shell, CapeOmega, Hav Energy, Silex Gas Norway, Orlen and ConocoPhillips, to buy their shares in the joint ventures Gassled, Nyhamna and Polarled.

However, agreements have not been reached with all system owners. North Sea Gas Infrastructure AS and M Vest Energy AS have not accepted the government's offer to buy their stakes in Nyhamna and Polarled, respectively.

Norway, however, intends to acquire a full stake in the joint venture Nyhamna and Polarled.

"The government intends to acquire the remaining stakes in these two joint ventures upon expiration of the licenses or pursuant to an earlier agreement," the Energy Ministry said in a statement.

The government's justification for the acquisition is as follows: "Providing low tariffs, adequate capacity and high consistency in the gas infrastructure best promotes efficient resource management and the creation of high value from the oil resources on the Norwegian continental shelf."

Norway is now Europe's largest supplier of natural gas after Russian supplies were cut off due to the Russia-Ukraine conflict.