Harbo the european gas and oil market clauses natural

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Unformatted text preview: n: <www.regjeringen.no/nb/dep/oed>. Norway has made considerable investments in the production and transmission of natural gas over the past 20-30 years. To safeguard these investments, a number of long-term contracts have been entered into with continental transmission companies with so-called take-or-pay (TOP) 19 © Ifri F. Harbo / The European Gas and Oil Market clauses. Natural gas customers (large industrial users and gas power plants, as well as local distribution companies) can in a liberalised market enter into new contracts with gas of another origin than what Norway has already sold to the transmission companies. The transmission companies have purchased the gas from Norway on long-term contracts under the assumption that they would re-sell it to these buyers. By splitting the transportation and sales functions of the transmission companies, and if their margins are lowered through competition or regulations, the companies may in a liberalised market be unable to fulfil their obligations towards the exporters. The wholesaler role of the transmission compani...
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