Norway 'sceptical' about gas price cap
Oslo, Norway – Norway, which has replaced Russia as Europe's leading supplier of natural gas, on Monday dashed the hopes of EU member states who wanted a cap on gas prices.
Following his second phone call with European Commission President Ursula von der Leyen in the space of a few days, Norway's Prime Minister Jonas Gahr Store said he was "sceptical" about the idea of a gas price cap.
"We agree to have an even closer dialogue with the EU in the future on the various proposals on the table", he said.
"We approach discussions in an open spirit, but we are sceptical of a maximum gas price".
European energy ministers who met Friday in Brussels said they were in favour of a series of measures aimed at combatting soaring gas and electricity prices, with some calling for a cap on the price of gas imports in the EU.
While the Commission has proposed a price ceiling on gas imported from Russia, several member states, including Italy, called for a price ceiling on all gas bought by EU states, noting that Russian gas imports accounted for only nine percent of EU imports.
The Commission, itself opposed to that idea amid fears it would push liquid natural gas (LNG) suppliers to look elsewhere, is expected to present a draft of its emergency energy measures this week.
NON-EU member Norway, which has benefited from soaring prices following Russia's invasion of Ukraine, has until now kept a low profile on the issue.
Underlining the importance of price movements to calibrate supply and demand, Norway has argued that it was up to oil and gas companies to negotiate their own contracts.
It has also said that European clients insisted in the past on spot contracts rather than longterm fixed contracts.
"A maximum price does not change the fundamental issue that there is a gas shortage in Europe", Store said.
The Scandinavian country recently replaced Russia as Europe's leading gas supplier, due to plunging Russian deliveries following Moscow's invasion of Ukraine and an eight percent increase of Norway's own deliveries.
The soaring prices and rising production have proven a cash cow for the Norwegian state.
Its oil and gas revenues are projected to soar to as much as 1.5tn kroner (Us$152bn) this year and 1.9tn kroner in 2023, smashing its own record set last year of 830bn kroner, according to calculations by Nordea Markets.
"The most important contribution that Norway can make to the current situation is to maintain gas production at a high level in the future", Norwegian Oil and Energy Minister Terje Aasland has repeatedly said.
Norwegian exports could reach a record level of 122bn cubic metres, he said in early May.
But criticism has emerged both in Norway and abroad, amid allegations of "war profiteering".