courtesy Shawcor

Norwegian pipeline operator Gassco has announced the scrapping of the Skanled pipeline project, an export route to Sweden, Denmark and some said Poland for gas from Norway’s North Sea fields.

The project looked to have new financial backers in Dutch pipeline operator Gasunie, and in March 2009, the Norwegian Oil and Energy Ministry was handed a study of how the pipeline would connect to Kårstø, a large process facility in southwest Norway.

But all that now appears for not, and the only new pipeline project still on the table for bringing gas to Northern Europe from the North or East is Gazprom’s Nord Stream pipeline, although the Baltic States have held up the project by playing an environment card none in the North Sea have ever used.

Now the Skanled Group — which included the Norwegian taxpayer’s Petoro, German gas giant E.ON Ruhrgas, Poland’s PGNiG, the Dutch Gasunie, Danish Energinet.dk, VNG, Skagerak Energi, Gøteborg Energi and Preem — appear to have disbanded.

“The Skanled partners decided today to suspend further project activities due to increased commercial risk combined with the global economic developments that have given an uncertain view on future gas demand,” a Gassco’s statement said.

Gassco executive vice president, Thor Otto Lohne, suggested delays at oilfield projects off Norway might also have played a part in the project players pulling out.

But Lohne admitted, “The project might be re-launched if the commercial conditions become more favourable in the future.”

The move clears the way for a renewed political assault on the Russo-German Nord Stream pipeline, now that the political bashing of one northern pipeline in favour of another no longer looks hypocritical. Some observers see the possible crushing of the Nord Stream pipeline from Russia to Germany and the resultant boost to Skanled’s economics as possibly leading to the Scandinavian trunkline’s revival.

Tags: E.ON Ruhrgas AG