Norway gas pipeline owners conclude tariff arguments in huge legal case

6/18/2015

By MIKAEL HOLTER
Bloomberg

Norway’s $4.4 billion court case over gas-pipeline tariff cuts adjourned Tuesday as the parties concluded their arguments ahead of a ruling by October.

A ruling on the lawsuit from disgruntled investors such as Allianz and Abu Dhabi’s wealth fund will be handed down in September or October, Oslo District Court Judge Finn Haugen said Tuesday.

Owners of about 44% of Gassled, Norway’s offshore pipeline network, have sued Norway’s government over the surprise tariff cuts of 90% due to take effect on new gas volumes in late 2016.

The investors, which also include Canadian pension funds and a fund run by UBS, claim the cuts will reduce Gassled’s income by 34 billion kroner ($4.4 billion) until 2028, of which the plaintiffs’ share is 15 billion kroner, and are asking for compensation.

“The government’s attitude in this case is practically ‘if you want to, you’re allowed to,’” Thomas Svensen, a lawyer representing the plaintiffs, said on the final day of proceedings Tuesday.

The cuts aren’t illegal and the investors had no reason to expect the tariffs wouldn’t be reduced, Thomas Naalsund, a lawyer representing the Ministry of Petroleum and Energy, said in court.

Gassled, the formal owner of the Norwegian gas transport infrastructure, supplies about 20% of Europe’s gas demand through links to the UK, France, Belgium and Germany.

The case has the official docket number 14-010957TVI-OTIR.