Norway's Nationalization: A Gas Pipeline Power Shift

Norway will take over much of its gas pipeline network from 2024 after a $1.64 billion deal with seven private owners. The government sees the 9,000 km network as nationally significant. While most owners agreed, two groups rejected the offer.

Norway has reached a significant agreement with seven private stakeholders, allowing the government to assume control of a substantial portion of the country's gas pipeline network starting in 2024, the Norwegian energy ministry announced on Tuesday.

In 2023, Norway articulated plans to nationalize its extensive gas pipeline system, along with a major processing plant, as existing concessions approach their 2028 expiry. The government extended an invitation for negotiation to existing owners, culminating in an 18.1 billion crown ($1.64 billion) compensation for relinquishing their assets.

As Europe's largest gas supplier following reduced Russian deliveries due to geopolitical tensions, Norway aims to assert full state ownership over the 9,000 km network. While seven entities have finalized agreements with the state, two other groups have chosen not to accept the terms offered.

(With inputs from agencies.)