Norway, which after the war in Ukraine became the largest supplier of natural gas to the European Union, “understands” the European need to calm the energy markets and create a long-term solution to the crisis created as a result of the conflict with Russia; This is what the Prime Minister of Norway, Younes Ger Setura, said in an interview with the British economic newspaper “Financial Times” today (Wednesday).
The Scandinavian country expects huge revenues due to the rise in European gas and oil prices, two fossil fuels it exports in large quantities. The country increased by 10% the production of gas in the fields in its territory to try and help the European Union wean itself off Russian gas. At the end of the week, Moscow stopped the flow of gas to Europe through the “Nord Stream” pipeline, and the Kremlin spokesman said that it will not be resumed “until the sanctions are lifted.”
“I fully understand that there is now an in-depth discussion in Europe regarding the way in which the energy markets work, how governments can allow cheaper prices for the private sector and industry, and how to deal with the drop in gas supply after the Russian invasion of Ukraine,” said Steura in an interview, “Norway does not close the doors to such a discussion”. According to the reports, as part of the immediate steps, long-term contracts of large European customers are now being considered with the Norwegian government company “Equinor” for the supply of gas at a price higher than last year’s, but lower than the highs reached by gas trading in Amsterdam in recent months.
Calls heard in the European media in recent weeks called for the country to voluntarily adopt a “ceiling price” for the gas it exports to the European Union, to ensure the stability of its consumers over time. When asked directly about the possibility of a price ceiling, the Norwegian Prime Minister replied: “I do not close the door on any idea that can advance Europe. It is in Norway’s deep interest to reduce instability, and increase credibility in relations with our allies and partners.”
Norway is expected to have the largest revenues in the tens of billions of dollars, and perhaps even hundreds of billions of dollars (depending on prices over time) from its oil and gas industry this year. “We are always open to discussing different ways of supplying energy, which also include long-term contracts,” said the CEO of the “Equinor” company. In recent years, Europe has worked to purchase gas at spot prices, instead of binding contracts for years. Tomorrow, an emergency meeting of the Union’s energy ministers will convene in an attempt to lower the raging prices in the continent’s energy markets.