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

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.

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.

“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.