Norway Buys Up Gas Pipeline Network to Cement State Control

Norway's government has struck a deal with private owners to nationalize much of its gas pipeline network, paying 18.1 billion crowns. This move raises state ownership to 100%, ensuring long-term profitability and low tariffs for exporters. Some companies have resisted the takeover offer.

In a significant move to consolidate control over its critical infrastructure, Norway has finalized agreements with seven private owners for the state takeover of most of the country's gas pipeline network. The deal, worth 18.1 billion Norwegian crowns, marks a committed step towards nationalization announced in 2023.

The acquired assets include around 9,000 kilometers (5,600 miles) of pipelines that serve as crucial supply routes to major European countries like Germany, Britain, France, and Belgium. While the government emphasizes that this isn't a security response to geopolitical tensions like Russia's invasion of Ukraine, the transition supports a strategy of lowering pipeline tariffs to boost export profitability.

A significant outcome of the agreement includes escalating Norway's state stake in the Gassled partnership to a full 100%, up from 46.7%. However, resistance from some groups, such as North Sea Infrastructure and M Vest Energy, persists, as they opted to retain their stakes, awaiting either deal renegotiation or concession expiry.

(With inputs from agencies.)