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New EU Energy Strategy Can Hit Norway

Norway exports more than 100 billion cubic meters of gas a year to the EU countries through an extensive pipe system. Almost all produced Norwegian gas is delivered to EU countries. Last year this amounted to 245 billion NOK, (27 percent of all Norwegian exports). The EU’s new gas policy can end this important income source for Norway, writes Norwegian daily Aftenposten.

This is part of a larger plan to increase the EU’s energy security, to be adopted at the EU summit in late June. The proposal that the Commission put forward last week is about to become less dependent on energy from outside. EU wants to become less energy dependent, with the pressure of the possible outcomes of the Ukrainian crisis. Because Russia is the largest exporter and sells annually about 160 billion cubic meters to the EU.

Talking to Aftenposten, the head of consultant company Sund Energy, Karen Sund describes Norway’s role and gas export future in the EU / EEA unclear. 

– The EU wants to reduce its import dependence, and it also applies to imports from Norway, she adds.

She points out that the EU will ensure this with more diverse gas suppliers. She also believes that the EU will try to produce their own “homemade” energy and to provide enough energy to create competition and thus lower prices for industry.

 Norway has invested heavily in delivering gas to Europe through pipelines. If the EU cuts gas imports, it will hit us Norwegian economy, according to Thina Saltvedt, chief analyst for oil at Nordea Markets.

Norway exported last year of gas to the EU 245 billion, which represented 27 percent of total merchandise exports. 20 years ago the share was 6 percent. 95 percent of the gas Norway exports go through pipelines to Europe. 4 percent is cooled and transported in ships (LNG), while around one percent is consumed in Norway.

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