Since the war in Ukraine, Norway has replaced Russia as the leading supplier of natural gas (LNG) to Europe. A place that she takes advantage of. In August, this small Scandinavian country generated a record trade surplus, approaching 20 billion euros, according to official figures released Thursday. This trade surplus is driven by the surge in gas prices in August and the gradual halt in deliveries of Russian gas via the Nord Stream 1 gas pipeline, whose the tap was totally cut off at the beginning of September.
Results ” Norway’s already high natural gas export volumes hit record high explained Jan Olav Rørhus, an expert from the Norwegian statistical institute SSB. In detail, in August, the trade surplus of the rich Scandinavian country stood at 197.7 billion crowns (19.6 billion euros), driven by gas exports, the value of which amounted to 176, 4 billion crowns. That’s a jump of 37.3% from the previous record in July, according to figures from SSB.
This manna contributes to replenish the already well-filled coffers of the Norwegian state, which notably controls 67% of the energy giant Equinor. It should earn this year a taxable profit of 900 billion crowns (89 billion euros), the third best performance in the world behind the Saudi Aramco and the American Apple, according to Nordea Markets.
Norway ‘skeptical’ of gas price cap
Also, faced with soaring energy bills on the continent, some are worried that the country is seen as a ” war profiteer and several European states are calling for a cap on the price of imported gas, including from Norway. Until now discreet on the question of a price cap, Norway is now openly opposed to it.
The Norwegian Prime Minister, Jonas Gahr Støre, indeed said recently: skeptical with respect to a gas price cap. ” We approach the discussions with an open mind but we are skeptical of a maximum price for gas. (…) A maximum price will not change the fundamental problem, namely that there is too little gas in Europe.»
For Oslo, a possible cap on the price of imported gas risks diverting from Europe deliveries of liquefied natural gas (LNG), which is easily transportable and whose suppliers could be tempted to look elsewhere. The Norwegian authorities also consider that it is up to the oil groups and their customers in Europe to negotiate the terms of their contracts themselves and to favor long-term contracts, at fixed prices and therefore giving more visibility, than those in cash. (spot), whose prices vary.
« It is not the Norwegian government that sells the gas. These are the companies. And, in principle, it is not the European authorities who buy the gas either. “, repeated the Norwegian Prime Minister, Jonas Gahr Støre, Thursday at the end of a meeting with the main producers of hydrocarbons in the country devoted to the energy crisis in Europe. « But we are keen to have a close dialogue to help bring stability to a market that lacks gas “, he added. Aker BP, one of the three oil companies invited to Thursday’s discussions alongside Equinor and Vår Energi, said it was in favor of long-term contracts, while highlighting the difficulties. The European Commission and Norway announced this week the establishment of a working group to examine these issues.
(With AFP)