The Baltic Pie project will entail expanding the current Goleniów Gas Compressor Station, as well as the transmission hub, and linking these components to the currently in place transmission infrastructure (red triangle).
By pumping more gas from the offshore Baltic Pipe network, the new Goleniów gas compressor station serves to increase the gearbox system’s capacity. In addition to being an essential connection in the North-South Gas Corridor, it will increase Poland’s energy security.
There are 5 parts to the Baltic Pipe Project.
1. The North Sea offshore pipeline
An offshore pipeline between the Norwegian gas system in the North Sea and the Danish gas transmission system
2. Onshore Denmark
Expansion of the existing Danish transmission system from West to East
3. Compressor station in Denmark
Compressor station located in the eastern part of Zealand
4. The Baltic Sea offshore pipeline
An offshore pipeline between Denmark and Poland across the Baltic Sea
5. Onshore Poland
Expansion of the Polish gas transmission system
Reuters, April 28 – OSLO The oil and energy ministry announced on Friday that Norway intends to nationalise the majority of its gas pipeline network when many of the current concessions expire in 2028 in order to bolster control over crucial infrastructure.
After Russian gas shipments decreased, Norway, which provides gas via a network of pipes spanning about 9,000 km (5,590 miles), became Europe’s top gas supplier.
The ministry announced on Friday that it will be writing licence holders to “signal the state aims to make use of the right of repatriation at the end of the licence period,” according to the government.
It stated, without elaborating, “The state wants complete state ownership of the central components of the Norwegian gas transport system.”
Norway participates actively in its industry and is the largest shareholder of several companies, including the nation’s largest bank, DNB (DNB.OL), the telecom business Telenor (TEL.OL), and the oil company Equinor (EQNR.OL).
Gassled, a partnership formed in 2003 by the oil firms producing gas offshore Norway at the time, owns the gas pipeline network. It cost billions of dollars to construct.
Reuters said that one of the Gassled co-owners was “surprised” by the action.
“Norwegian petroleum policy has had its foundation on combined ownership from private companies and the state and has worked well,” said Kurt Georgsen, CEO of Silex Gas, which is completely owned by German insurer Allianz (ALVG.DE).
“We will work with the government to find a good solution for the transfer of ownership,” he continued.
Partners Group (PGHN.S), which paid 1.2 billion euros ($1.3 billion) for one of Gassled’s co-owners, Cape Omega, in 2019, told Reuters it would engage “constructively” with the government to find a solution. It did not elaborate.
The Norwegian government already owns 46.7% of Gassled through the state-owned business Petoro, while Equinor owns the remaining 5%.
The government may be required to compensate other shareholders in some situations, according to the ministry, which did not elaborate.
One opposition party questioned the government’s reasoning.
“I don’t see any reason to nationalise these pipelines,” Terje Halleland, the Progress Party’s energy spokesman, told Reuters. “The state already has control of Gassled, and the (gas transportation) sector is heavily regulated.”
“I think it’s going to be a negative for future investments in the Norwegian continental shelf,” he added.
Gassled owns the processing plants in Kaarstoe and Kollsnes, as well as the majority of the pipelines that transport Norwegian gas to the European Union and the British.
The authorities had not specified which parts of the network will be taken over. Requests for additional information were not immediately responded to by the energy ministry.
One opposition party questioned the government’s reasoning.
“I don’t see any reason to nationalise these pipelines,” Terje Halleland, the Progress Party’s energy spokesman, told Reuters. “The state already has control of Gassled, and the (gas transportation) sector is heavily regulated.”
“I think it’s going to be a negative for future investments in the Norwegian continental shelf,” he added.
Gassled owns the processing plants in Kaarstoe and Kollsnes, as well as the majority of the pipelines that transport Norwegian gas to the European Union and the United Kingdom.
It was unclear which specific elements of the network would be taken over by the authorities. The energy ministry did not immediately respond to requests for additional information.
Oil companies have reduced or sold their interests over time, frequently to investment firms.
In addition to Partners Group and Allianz, HitecVision is a shareholder in Gassled. It did not respond immediately to a request for comment.
