• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 18 hours Could Venezuela become a net oil importer?
  • 3 mins Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 21 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 3 hours Oil prices going Up? NO!
  • 18 hours Gazprom Exports to EU Hit Record
  • 19 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 18 hours Could oil demand collapse rapidly? Yup, sure could.
  • 11 hours Oil prices going down
  • 21 hours Why is permian oil "locked in" when refineries abound?
  • 18 hours Oil Buyers Club
  • 21 hours EVs Could Help Coal Demand
  • 9 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 day China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 4 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 16 hours Saudi Arabia turns to solar
Oil Markets Will Only Get Tighter

Oil Markets Will Only Get Tighter

OPEC has agreed to increase…

OPEC Confident Global Oil Demand Will Stay Strong

OPEC Confident Global Oil Demand Will Stay Strong

The OPEC technical panel has…

Investors Sue as Norwegian Government Cuts Pipeline Tariffs by 90%

The Norwegian energy ministry has announced that it will follow through with previous plans and lower the tariffs it charges for using its natural gas pipeline system. This decision has angered several investors in the pipeline, one of whom is Abu Dhabi, who have begun the process to sue Norway for compensation.

The group of investors, which includes several international investment funds, such as; the Abu Dhabi Investment Authority, the Canadian Pension Fund, and Allianz, have spent around $5.1 billion in the past few years to buy their stakes in the Norwegian pipeline, which were always considered a safe investment.

Initial plans did have the government introducing the tariff cut at the end of the year, but that has been pushed back to 2016 now. The 90% tariff reduction is intended to encourage operators in mature fields to increase production and more exploration in the Arctic.

Related articles: British North Sea Oil Decline Opens Window for Smaller Producers

Norway’s Gassled pipeline network
Norway’s Gassled pipeline network consists of 8,000 kilometres of pipe, and transports gas toterminals in Great Britain, France, Belgium, and Germany. (Statoil)

Investors will see their returns fall from a predicted seven percent to four percent, and have declared that the decision is illegal and therefore invalid, although obviously the Norwegian government claims it has acted within the law.

Related articles: Norway Overtakes Russia as the EU’s Top Natural Gas Supplier

Abu Dhabi Investment Authority invested in Solveig Gas Norway, one of the main shareholders in the Gassled system (Norway’s network of natural gas pieplines), along with Njord Gas Infrastructure, and Silex Gas, controlling 39%; Petoro, the Norwegian state-owned energy company is the majority shareholder with 45.8%

A spokesman from the energy ministry admitted that they had received letters from three companies and “are taking them into the consideration.”

Trygve Pedersen, the head of Solveig Gas Norway, said that the letters are a way of “basically notifying that their (ministry's) decision lacks legal foundation, and that we will claim financial losses.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News