Gassco Enters Karsto Pipeline Agreement

Gassco has entered into an agreement with fourteen Norwegian, Swedish and Danish industry and energy companies. The agreement was presented to the Norwegian Minister of Petroleum and Energy, Mr. Odd Roger Enoksen.

This is a promising project which may have a possible influence on industrial activity in Eastern Norway if it becomes a reality. I am impressed by the work done by Gassco and the industry. Their work will form the basis for the continuation of this project, Minister Enoksen said.

However, the minister emphasizes that major efforts are still needed before a decision to build the pipeline can be made. The companies have not committed themselves to fully financing the project. Seven companies have agreed to an ownership of a total of 70 percent of the pipeline, while nine companies have committed to pay for the right of using the transport system. Minister Enoksen says the government will discuss how the state can contribute to realizing the project.

Originally planned as a pipeline to Eastern Norway, it has now developed into incorporating landfalls in Sweden and Denmark. This could enable deliveries of Norwegian gas to Sweden and Denmark.

I will shortly have meetings with my Scandinavian colleagues to discuss the gas pipeline project, says Minister Enoksen.

Decisions concerning investments will be made in 2009 with a possible start-up in 2012.