Norway trade surplus hits record on back of rising European gas sales

Norway’s trade surplus surged to a new record in August, fuelled by a jump in natural gas prices as the Nordic country is now Europe’s biggest supplier after Russia slashed exports, according to fresh data released on Thursday (15 September).

The data comes as soaring gas prices have put Oslo in an awkward position with the European Union, with some EU countries seeking a price cap on natural gas.

Norway’s trade surplus reached close to €20 billion last month, according to the country’s SSB statistics office.

SSB expert Jan Olav Rorhus said gas prices increased sharply in August in part because Russian deliveries to the EU via the Nord Stream 1 pipeline were reduced.

“This resulted in export volumes of natural gas from Norway, which were already elevated, reaching a record value,” he added.

Russian energy giant Gazprom has completely stopped deliveries via Nord Stream since August 31 in what has been seen as retaliation to European sanctions against Moscow over the war in Ukraine. The Kremlin has said that sanctions prevent the maintenance of the pipeline.

Norway has been partially filled the void, becoming Europe’s top supplier.

In June, Brussels and Oslo agreed to “step up cooperation in order to ensure additional short-term and long-term gas supplies from Norway,” according to a statement published after a meeting between EU climate chief Frans Timmermans and Norway’s energy minister Terje Aasland.

“There is strong potential for increased sales to Europe in 2022, bringing close to 100 TWh of extra energy to the European market,” the statement said.

EU, Norway agree to increase gas deliveries as Russian cuts deepen

The European Union and Norway agreed on Thursday (23 June) to cooperate to bring more gas from western Europe’s biggest producer to the EU’s 27 countries, nearly half of which are now grappling with cuts to Russian gas supplies.

Last week, European energy ministers backed a series of measures aimed at combatting soaring gas and electricity prices, with member states like Belgium and Italy calling for a price cap on all gas imported in the EU.

The European Commission at one point suggested a price ceiling on Russian gas only, but has since retreated from the idea altogether, saying a better way to reduce prices was to negotiate deals with supplier countries such as Norway.

A new task force will be set up to negotiate agreements with Norway and other gas suppliers so that “we lower in a reasonable manner the price for gas,” von der Leyen said in her annual State of the Union speech on Wednesday (14 September).

And an “solidarity contribution” will be demanded of oil and gas companies, which have reaped extraordinary profits from soaring prices on global energy markets, the European Commission chief announced.

Norway’s Prime Minister Jonas Gahr Store said he was “sceptical” about the idea of price caps following a phone call with von der Leyen.

Ukraine war profits fuel unease in Norway

One man’s loss may, at times, be another’s unfortunate gain, and the Ukraine conflict is proving a boon to some energy producing nations as oil prices soar.

[Edited by Frédéric Simon]

Read more with EURACTIV

Rosneft subsidiary in Germany placed under state trusteeship

After Gazprom Germania was placed under trusteeship earlier this year, Berlin plans to seize another state-owned Russian energy company – Rosneft Germany, which owns the problematic Schwedt oil refinery.