Norway Secures Full Control Over National Gas Pipeline Network

Norway has finalized a deal for the government to take over a large portion of the nation's gas pipeline network from seven private owners, increasing its stake in Gassled to 100%. The agreement, worth 18.1 billion crowns, aims to maintain low tariffs and facilitate long-term gas production.

In a significant move, Norway has secured an agreement to take over the majority of the country's expansive gas pipeline network from seven private owners, the Norwegian energy ministry announced on Tuesday. The government will pay 18.1 billion crowns ($1.64 billion) to increase its stake in the Gassled partnership from 46.7% to full ownership. The acquisition includes approximately 9,000 km of vital subsea pipelines serving European nations like Germany and Britain.

The strategic acquisition aligns with Norway's objective to ensure low pipeline tariffs for gas exporters and sustain profitable long-term production. Despite becoming Europe's leading gas supplier after Russia's supply drop post-Ukraine invasion, the Norwegian government insists the decision is not influenced by national security concerns but by national interest in key infrastructures.

While the majority of private stakeholders have agreed to sell, dissent remains as North Sea Infrastructure and M Vest Energy declined the government's offer, retaining their stakes. The government, however, aims to acquire these stakes once concessions lapse or via further negotiation.

(With inputs from agencies.)