Oslo will help the EU with gas. A sharp increase in prices is not in our interest, said the Norwegian Prime Minister

Oslo will help the EU with gas. A sharp increase in prices is not in our interest, said the Norwegian Prime Minister
Oslo will help the EU with gas. A sharp increase in prices is not in our interest, said the Norwegian Prime Minister

Störe talked with representatives of mining companies about how to achieve a reduction in the prices of gas that Norway supplies to other European countries on the market. They also discussed the possibility of long-term gas supply contracts.

“It is not in Norway’s interest that we have such extraordinary price increases for gas,” said the prime minister after the meeting. Norway is now Europe’s largest supplier of gas through a network of pipelines, Reuters reported.

Representatives of energy companies noted that they are interested in long-term contracts. But they want to know who will be the counterparty to these contracts.

Too much risk

“At current price levels, it’s too much of a risk for most private players,” Aker energy company chief Öyvind Eriksen told reporters. The company also includes Aker BP, which is the second largest producer of natural gas in Norway. “So it is partly a question of the price mechanism and partly also of how states and companies can work together to solve this very serious situation,” he added.

The Russian company Gazprom, which is controlled by the Kremlin, used to be an important supplier of gas to the European Union. But years ago, the EU started replacing long-term contracts with Gazprom with short-term contracts, where prices fluctuate much more. Brussels justified its position by the need to reduce dependence on raw materials from Russia.

The situation on the market was complicated by the invasion of the Russian troops into Ukraine in February this year. After it, Western countries introduced a series of tough anti-Russian sanctions and are accelerating efforts to stop taking oil and gas from Russia.

The article is in Czech

Tags: Oslo gas sharp increase prices interest Norwegian Prime Minister

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