Norway seeks to help EU cope with gas price pain after Russia cuts

Norway said on Thursday that sky-high gas prices are not in its interest and it would work with the EU to steady the market, although Europe’s biggest supplier of piped gas is already at capacity trying to fill a gap left by Russia.

The European Union is grappling with the impact of soaring gas prices that have driven up inflation, pushed some utilities to the brink and threatened recession, prompting urgent proposals by its executive to protect consumers and businesses.

“It is not in Norway’s interest that we have these extraordinary gas price spikes,” Prime Minister Jonas Gahr Stoere told reporters after meeting gas companies to discuss ways to bring down the price at which Norway sells to Europe.

Surging European gas prices, up 250 per cent or more in the past year, have sharply boosted Norway’s export revenues but created havoc for energy companies caught in the maelstrom.

Since Russia cut flows to Europe, Norway has become the region’s top piped gas supplier, with Moscow blaming the reductions on technical issues caused by Western sanctions over its invasion of Ukraine. Europe says that is a pretext.

Norway is expected to produce some 122 billion cubic metres (bcm) of gas this year, according to official forecasts in May, up 8 per cent from 2021 as producers lifted output as much as possible.

Russian Deputy Prime Minister Alexander Novak said Russian gas exports to the EU would fall by 50 bcm this year, Interfax reported. It sent about 150 bcm to the EU in 2021.

Agencies