September 25, 2022

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Exorbitant price for gas storage Norg |  Financial issues

Exorbitant price for gas storage Norg | Financial issues

Many experts had urged our country to keep such a strategic gas reserve, after high gas prices and empty gas storage facilities last winter.

The price is the result of the arbitration case between the parties, Minister of State Filpreefe (mining) reports to the House of Representatives.

The arbitration case came after agreements between the two parties to fill the gas storage in Norge with foreign gas diluted with nitrogen. Then it resembles Groningen gas. In this way, the gas tap in Groningen can be closed ahead of time. The NAM incurs additional costs to fill the storage with foreign gas, so now the Cabinet has to make the cut.

Most of the cost is in buying gas, so it will go to sellers, such as potential Russian Gazprom and US LNG exporters.

Groningen field

By filling the storage with other gas, 11.9 billion cubic meters less can be extracted from Groningen. But this includes an account. “It is expected that this amount will reach 7.5 billion euros for all years together,” Filbrev states. Compensation is determined at the end of the relevant gas year on the basis of actual market prices.

D66 Minister says filling Norg with fake Groningen gas is essential to reduce gas extraction in Groningen as quickly as possible. β€œThe safety of Groningen residents is of paramount importance. The rapid closure of the Groningen field remains a top priority for the Cabinet.”

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