Gassco plans Nordic gas pipeline

Jan. 30, 2007
Norwegian gas pipeline operator Gassco AS has submitted a plan to the Norwegian energy ministry to develop a 3 billion cu m/year gas pipeline from Kårstø in western Norway to eastern Norway, western Sweden, and Denmark.

Uchenna Izundu
International Editor

LONDON, Jan. 30 -- Norwegian gas pipeline operator Gassco AS has submitted a plan to the Norwegian energy ministry to develop a 3 billion cu m/year gas pipeline from Kårstø in western Norway to eastern Norway, western Sweden, and Denmark.

Plans call for 463 km of 24-in. pipeline to be laid from Kårstø to the Grenland industrial region in eastern Norway and a 270 km, 18-in. section from Grenland to Sweden. From Sweden to Denmark an existing pipeline operated by Nova Naturgas will be used.

After carrying out a feasibility study for the past 2 years, Gassco has received interests from seven companies to own 70% of the proposed pipeline, while another nine have committed to pay for the right to use it. A Gassco spokesman told OGJ that 14 companies—from Norwegian, Swedish, and Danish industry and energy sectors—will spend $23.6 million on the preengineering phase that will continue until 2009.

The owners would be Skagerak Energi, Østfold Energi, Hafslund, Nova Naturgas, and Agder Energi. Throughput users would be Statoil, Hydro Polymers, Borealis, Yara, Preem, Perstorp, Kemira Kemi AB, Pilkington, Stora Enso, Höganäs AB, Trelleborg AB, Öresundskraft, EKA, and Lunds Energi.

For the project to continue, Gassco needs to secure binding purchase contracts before June 30. "The investing companies can renounce their transport undertakings if such contracts are not in place by then," Gassco said.

Norwegian Minister of Petroleum and Energy Odd Roger Enoksen said the government will discuss how it can contribute to the project. "I will shortly have meetings with my Scandinavian colleagues to discuss the gas pipeline project," he said.

Gassco plans to make a final development decision in 2009 and start operations in 2012.

Contact Uchenna Izundu at [email protected].