Investment Europe: Norwegian gas export cut possible threat to funds

Exports of natural gas from Norway could plummet depending on the direction that UK climate policies take in future, in turn posing questions for managers exposed to the local stock market.

The warning on gas exports is carried in Dagens Næringsliv, on the basis of projections being considered at National Grid, the UK firm responsible for the transmission of gas across the UK - and which accounts for a quarter of Norway's gas exports, overall worth about NOK170bn (€23bn).

National Grid has published three scenarios for the UK gas market until 2030. One suggests the UK will not achieve its greenhouse gas commitments, which would see an increase in gas imports by 2030. Another is that the UK achieves its 2020 targets in line with the EU Renewables Directive, which would lead to a halving of demand for Norwegian gas from today's levels. The third scenario would see gas exports fall to zero, as the UK speeds towards a domestic base of renewable energy.

Dagens Næringsliv said that these scenarios are considerably different from the Norwegian government picture of increasing petroleum based exports to Europe in coming years.  MORE