Norwegian minister did not support gas supplies to the EU at a fixed price

Norway will not ask its energy companies to enter into long-term contracts for the supply of gas at a fixed price in order to reduce rising costs for European consumers. This became known from a letter from the Norwegian Minister of Oil and Energy Terje Aasland to Parliament.

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European gas buyers are starting to argue that Norway should cut prices. One option was to enter into long-term contracts at prices well below today’s spot prices, such as the equivalent of $150-$200 per barrel of oil, which would still be well above the historical average.

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“I do not plan to pursue a policy whereby oil and gas companies on the Norwegian continental shelf will be required to enter into contracts for the supply of gas at a fixed price,” Aasland said.