Skanled Project Suspended on Lack of Gas Demand

The Skanled partners decided today to suspend further project activities due to increased commercial risk combined with the global economic developments that have given an uncertain view on future gas demand.

"Despite strong efforts by many stakeholders to succeed with the project, it is Gassco's view that the current economic environment and also subsequent uncertainties related to timing of new field developments on the Norwegian Continental Shelf, have weakened the basis for the project," said Thor Otto Lohne, executive vice president in Gassco.

"The project might be re-launched if the commercial conditions become more favorable in the future," he added.

Partners in the Skanled Project are Petoro, E.ON Ruhrgas, PGNiG, Gasunie, Energinet.dk, VNG, Skagerak Energi, Goteborg Energi and Preem.

Skanled Pipeline Project

Skanled is a planned pipeline that will go from Karsto on the Norwegian West Coast to Grenland on the Norwegian East Coast, and to Sweden and Denmark. The pipeline makes possible the export of gas to Sweden and Denmark, and lays the ground for industrial use of gas in the Grenland region on the East Coast.