The Integration of Scandinavia with the European Natural Gas Market
DOI:
https://doi.org/10.15173/esr.v7i2.369Abstract
Scandinavia is an outlier in the European gas market, with very low gas consumption levels. Given the favorable prospects for longer term European gas supply, the paper considers how the Scandinavian region could be more closely knit with the European gas market. The costs and logistics of a pipeline from the Norwegian gas fields through mid-Sweden and southern Finland, to link up with existing pipes carrying Russian gas, are reviewed in detail. Norwegian gas appears to be competitive with alternative fuels in satisfying growing energy needs along the pipe. But given the erratic energy policies in the two countries, private agents are unlikely to undertake the necessary long term investments. Political guarantees are necessary to bring such investments about.
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