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

Highscore gas storage facility in the city haidah near Salzburg. Archive photo

Norway will not ask your energy company to enter into long-term gas supply contracts at a fixed price for the sake of reducing the growing costs for European consumers, reports Reuters, citing a letter to the Norwegian oil and energy Minister Terje Aasland in Parliament.

The Financial Times last week, wrote that the European company engaged in the procurement of gas begin to discuss that Norway would cost to cut prices. As one of the variants were offered long-term contracts at prices well below today’s spot, for example, at a level equivalent to 150-200 dollars per barrel of oil, it would still be well above average historical levels.

“I do not plan to pursue a policy in which 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”, – quotes the words Aasland Agency.

The Minister added that instead, Norway need to focus on the supply of more gas to meet growing demand and to remain a reliable supplier.

Now Europe continues to experience pressure due to the ongoing tension with the supply of gas from Russia. Russian gas exports fell after the beginning of military operations in Ukraine: delivery on the “Nord stream” through the Ukrainian gas transportation system significantly decreased, and the “Yamal – Europe” stopped altogether.

The monthly average settlement price of the nearest gas futures on the ICE futures exchange (by index TTF), according to calculations by RIA Novosti, has risen sharply by almost 50%, from $ 1,180 per thousand cubic meters in June to about 1805 dollars in July, while in the middle of summer last year did not exceed $ 500. And at the end of August quotes a gas kept at the level of $ 3,000 and a few times I updated the historical maximum estimated price. Such sustained high prices were not over the entire history of the functioning of the gas hubs in Europe since 1996.