In Norway, it was considered unprofitable to build gas pipelines in the EU

Norway, which last year replaced Russia as the main supplier of natural gas to the European Union, is unlikely to significantly increase supplies in the future. According to RBC with reference to The New York Times, this was stated by the CEO of the Norwegian oil and gas company Aker BP Carl Johnny Hersvik.

He said that Norway could slightly increase the transport of oil and gas through its pipeline network above the current one. Herswick also expressed doubt that the country would build new oil and gas pipelines to Europe. To recoup such costs, it will take about 20 years of operation, the head of the company explained.

NYT recalls that last year, against the backdrop of the energy crisis in Europe, the Norwegian government authorized additional gas production. The result was an eight percent increase in gas production in 2022, allowing the country to supply about a third of the fuel consumed in the EU.

At the same time, according to the newspaper, record gas production, as well as a large number of hydroelectric power plants, did not protect the Norwegians from the rapid rise in electricity prices. Christiansen Svein, owner of oil rig parts firm Smed T. Kristiansen, told the NYT that prices have roughly quadrupled in a year.

Oslo’s income from the sale of energy resources increased significantly last year. In particular, the oil tax amounted to 884 billion NOK (more than 6 trillion rubles at the exchange rate of the Central Bank at the time of publication) – three times more than in 2021 (then it was 296 billion, more than 2 trillion rubles). Income from licenses for oil and gas fields also grew almost three times compared to 2021 and amounted to about $50 billion (almost 4 trillion rubles). The country promised to send part of the excess profits to help Ukraine.