Investors in Norwegian Pipelines Sue State for Losses

Njord Gas Infrastructure, Solveig Gas and Silex Gas said that they intend to proceed with legal actions against Norway to claim compensation for losses due to cuts in gas transportation tariffs. 

A scheduled 90% cut in gas transport tariffs, due to come into effect May 1st, was delayed in April. According to the new plans, lower tariffs will apply from 2016 instead of 2013. 

Norway announced tariff cuts to make additional finds profitable and to boost exploration and recovery rates. Lower tariffs would then encourage energy firms to explore for more gas in the Arctic Barents Sea, where only a few discoveries have been made thus far.

At the same time, companies have spent $5.1 billion in recent years to acquire stakes in Norwegian pipelines and investors claim that the decision to cut tariffs is illegal.

The three companies said they had notified Norway’s Oil and Energy Ministry on Thursday about their intention to sue the Norwegian state. Njord Gas Infrastructure, Solveig Gas and Silex Gas together hold almost 39% of Gassled venture. The main stake is in the hand of Petoro (45.7%), which at the moment did not follow the three companies in the legal actions. 

Petroleum & Energy Minister Ola Borten Moe responded to the accusation, arguing that the proposed tariff cut is legal.