Governments of the U.K. and Norway have agreed to a revision of the Frigg pipeline treaty.
That could lead to increased sales of Norwegian gas to U.K. and even to the European continent via the U.K.-Belgium Interconnector pipeline.
Background
The Frigg treaty was first signed in May 1976, to enable gas from Norway's Frigg field to be delivered by pipeline to St. Fergus terminal north of Aberdeen.
In 1992, Norway requested permission to develop other gas fields near Frigg, but the U.K. refused to allow gas from fields not mentioned in the treaty to be imported.
During the tenure of Tim Eggar as U.K. energy minister, Britain appeared to be stalling over renegotiation of Frigg, although Eggar always maintained talks were continuing.
In 1995, the U.K. relaxed its position, recognizing that its calls for establishment of liberalized gas markets across Europe were at odds with its stance on the Frigg treaty.
Frigg operator Elf Norge AS brought Frigg's Froey satellite on stream in 1995, but only since Lord Fraser of Carmyllie took over as U.K. energy minister in 1996 did Frigg negotiations progress significantly.
Revised treaty
The U.K. Department of Trade and Industry (DTI) said the revised Frigg treaty will enable Norway to sell non-Frigg gas to customers in the U.K. and other countries and offer spare capacity in Frigg pipeline to U.K. operators.
The revised treaty also covers laying and operation of new offshore pipelines crossing the U.K./Norway marine boundary and connections between British and Norwegian infrastructure.
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