Statoil ASA, Norway’s biggest energy company, canceled plans to build a pipeline tying the Kristin natural-gas field to the planned $4 billion Polarled tube in the Norwegian Sea because of costs and volume uncertainties.
Three more owners of Norway’s gas- pipeline network, including a company backed by Allianz SE and Abu Dhabi’s wealth fund, sued the government over tariff cuts they say will reduce income by about $6.5 billion.
Statoil ASA and Eni SpA are among companies with plans to drill a record number of wells in Norway’s far north this year to help the world’s second-largest gas exporter to sustain output. So far, they’ve struck out.
Norway will need years to smooth out the damage caused by unexpected cuts to gas pipeline tariffs and the withdrawal of support for its export credit lender, according to the head of its biggest business group.
Gassco AS, Norway’s natural-gas pipeline operator, said the concept for a link from the Luva field in the Norwegian Sea to existing processing facilities at Nyhamna will be selected in the autumn of this year.
Europe may face a shortfall of Norwegian natural gas as soon as 2015 after the country slashed its estimate for undiscovered resources because of a dearth of discoveries from companies such as Royal Dutch Shell Plc .