Norwegian Minister of Petroleum Proposes to Reduce Gas Tariffs

Ministry of Petroleum and Energy of Norway has submitted a proposal to reduce the tariffs for new gas volumes from the Norwegian shelf.

“Sound resource management also requires correct pricing of gas transport for new projects. The proposal to reduce transport costs for new gas volumes will facilitate more exploration, development of more discoveries and further measures on existing fields. It also helps in selecting the best gas transport solutions,” says Minister of Petroleum and Energy Ola Borten Moe.

Gassled is a joint venture and is the formal owner of the infrastructure associated with gas transport from the Norwegian shelf. The Gassled facilities with associated regulations are a key part of the framework conditions for the oil and gas activities. Most of the gas on the Norwegian shelf must be transported through Gassled to reach the European markets.

One of the main objectives of the resource management is to see that as much as possible of the socio-economically profitable petroleum resources are produced. The cost of transporting additional volumes through the existing transport system is low. Lower tariffs in Gassled will be one step in ensuring sound resource management by facilitating implementation of socio-economically profitable oil and gas projects.

“My proposed change will enable us to achieve better resource management and higher value creation from the Norwegian shelf in a long-term perspective,” says Minister of Petroleum and Energy Ola Borten Moe.

The historic capital tariff revenues and future capital tariff revenues from signed transport agreements will together provide reasonable returns on capital invested in the facilities which currently make up Gassled. The Ministry’s proposal will entail that reasonable returns will be achieved on capital invested in Gassled, as well as reasonable returns from future transport agreements.

The proposal to reduce the tariffs concerns new transport agreements and will entail a significant reduction in the tariffs for transport and treatment of new gas volumes on the Norwegian shelf. This will, in turn, increase value creation and State revenues from the petroleum resources.

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LNG World News Staff, January 15, 2013; Image: Ministry of Petroleum and Energy