Skanled Project Suspended
Oslo April 28 – 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.
“Despite strong efforts by many stakeholders to succeed with the project, it is Gassco’s view that the current economic environment and also subsequent uncertainties related to timing of new field developments on the Norwegian Continental Shelf, have weakened the basis for the project,” says Thor Otto Lohne, executive vice president in Gassco. “The project might be re-launched if the commercial conditions become more favorable in the future,” he adds.
“I am disappointed that we cannot move forward with the Skanled project at this time. It is a sad day for Grenland,” says Mr. Terje Riis-Johansen, Minister of Petroleum and Energy.
“The industry is shaken by the financial unrest and the Skanled pipeline would have contributed to industrial development in the Grenland region. The Skanled project has been important to me and to the Government, and we have done all that can be done to realize the project. Without participation from the non-Norwegian companies, it is not possible to achieve sufficient use of the pipeline. I believe that an economic upturn may give a new basis for this project at a later stage,” says Terje Riis-Johansen.