Norway: Gassco-Backed Pipeline Must Be Privately Funded

A proposed €4.2 billion pipeline, planned to transport Norwegian gas to Europe, must be privately funded the Norwegian Minister of Petroleum and Energy has said.

The 1,000 kilometre pipeline, first proposed by Norwegian-based Gassco in a report commissioned by the minister, would aim to transport from the Barents Sea to the rest of Europe. The construction of the pipeline, if approved, would begin in 2020.

Minister Ola Borten Moe said the pipeline would not receive funding from the government and would instead have to be funded by private investors.

"This region will be the next oil and gas province in Norway," Reuters reports the Minister as saying. "Hopefully there is a lot more to be discovered there."

He said the potential discoveries could secure Norway's place as a major supplier of oil and gas for years to come.

"But it is not the government that is going to spend money on this infrastructure project, it is private investors," he said.

The pipeline needs further consideration before any decisions can be made, the minister said.