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Norway pipeline appeal goes to court

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World Pipelines,

A Norwegian court is set to hear an appeal over tariff cuts. Four offshore gas pipeline companies have sought to overturn a ruling to cut offshore gas transportation tariffs. The offshore investors claim that the decision could cost them approximately US$1.8 billion in lost earning by 2028.

Bloomberg reported that the investors “were stunned” after the government decided to cut tariffs by as much as 90% for future gas volumes in 2013.

According to Reuters, who was cited by Yahoo News: “Solveig Gas, Njord Gas Infrastructure, Silex Gas and Infragas, which hold a combined 44% stake in pipeline owner Gassled, claim that Oslo's decision was illegal and took it to court, but lost the case in September.”

As cited in Bloomberg, “There’s no basis to change the tariffs in the way they have done, based on the relevant regulations,” Kurt Georgsen, CEOof Silex Gas Norway AS said in an interview. “This is quite simply a gift to the oil and gas companies, which isn’t justified by resource-management considerations.”

According to a statement by the Borgarting Court of Appeals, the appeal hearing is expected to last from between 31 January and 7 April.

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