Monday

4th Dec 2023

Norway rejects EU price cap proposal

  • 'We have been very clear. We want a solution [to be found] in a commercial framework. And that is still our message,' said Norway's minister of oil and energy Terje Aasland (Photo: Arbeiderpartiet)
Listen to article

Norway opposes the EU proposal to set a dynamic price ceiling for natural gas transactions, the country's minister of oil and energy Terje Aasland warned on Wednesday (27 October).

"The most reasonable way to handle the future and also th[is] special situation [of high prices] is to have a commercial framework where the companies meet and have contracts for gas and energy," Aasland said in a press conference alongside EU energy commissioner Kadri Simson.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Simson travelled to Oslo to strengthen cooperation with Norway under the EU-Norway Energy Dialogue, launched earlier this year. Discussions covered the current energy crisis, as well as topics like critical infrastructure, renewables, and green hydrogen.

Norway's opposition to price caps comes amid intense discussions in the EU over how to tackle energy prices and shield consumers from soaring bills.

EU countries have agreed to purchase gas together through a joint platform before next winter, covering up to 15 percent of the EU's gas storage capacity.

But they remain divided over whether and how to limit gas prices.

The commission has proposed, as a last resort, to intervene in markets and set a maximum dynamic price for transactions made on the Dutch Title Transfer Facility (TTF) — but some EU capitals fear such a measure could prompt companies to sell their gas to other regions, putting the security of supply at risk.

EU energy ministers this week called on the commission to present an analysis of how the price cap will ensure the EU's security of supply. "Technical work is ongoing," said Simson.

Since Russia cut gas flows to Europe, Norway has become the bloc's largest supplier of gas, covering about 25 percent of the union's needs.

When asked whether the EU-Norway Energy Dialogue narrowed the gap between the parties on outstanding issues, Simson was elusive.

The commission has established a task force with energy suppliers to "find a solution that helps us to stabilize the gas price" and takes into account the views of counterparts, the commissioner said.

"Today's meeting was not meant to replace this task force's work," she said.

Aasland, for his part, said that dialogue is important in this difficult time. "I fully respect the way that the EU and the commission are working".

"We have been very clear. We want a solution [to be found] in a commercial framework. And that is still our message," he also said.

All-time high for Norway's oil and gas production

Norway currently has 90 oil and gas-producing fields, which could rise to more than 130. One way that harms the shift to a greener economy is because offshore wind and the burgeoning hydrogen industry are competing for the same workers.

EU is 'close to the solution' on gas price cap

The outcome of the two-day meeting of EU leaders did not deliver any clear agreement on whether and how to limit gas prices — but some believe EU ministers will agree on emergency measures in the coming weeks.

Analysis

What are the big money debates at COP28 UN climate summit?

The most critical UN climate conference (COP28) ever will run from Thursday to mid-December — with talks on climate commitments and climate finance expected to determine the success of this year's summit.

Latest News

  1. COP28 warned over-relying on carbon capture costs €27 trillion
  2. Optimising Alzheimer's disease health care pathways across Europe
  3. Georgian far-right leader laughs off potential EU sanctions
  4. The EU's U-turn on caged farm animals — explained
  5. EU-China summit and migration files in focus This WEEK
  6. COP28 debates climate finance amid inflated accounting 'mess'
  7. Why EU's €18m for Israel undermines peace
  8. Israel's EU ambassador: 'No clean way to do this operation'

Stakeholders' Highlights

  1. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  2. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  3. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  4. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?
  5. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  6. UNOPSFostering health system resilience in fragile and conflict-affected countries

Join EUobserver

Support quality EU news

Join us