Njord Gas Infrastructure AS, a company controlled by funds run by UBS AG (UBSN) and Caisse des Depots et Consignations sued the Norwegian government to reverse tariff cuts on the Gassled pipeline network.
Njord argues that the government’s “decision to reduce the Gassled tariffs does not have sufficient legal basis and must therefore be ruled invalid,” it said in a statement today. “The company also claims compensatory damages for the loss the company incurs as a result of the decision.”
Dan-Jarle Floelo, chief executive officer of Njord, said the company hasn’t specified a compensation amount in the lawsuit. The Gassled owners, which also include Solveig Gas Norway AS, Silex Gas Norway AS and Infragas Norge AS, have estimated that the cuts will reduce income by 34 billion kroner ($5.5 billion), Floelo said by phone today.
Norway’s previous government, led by Jens Stoltenberg, pushed through cuts as deep as 90 percent to the tariffs that operators of the gas pipelines can charge to ship the fuel. That’s been backed by Norway’s new administration, led by Erna Solberg. The changes, announced in June, will see the tariffs for new gas transport agreements reduced from October 2016.
Lise Rist, a spokeswoman for the Ministry of Petroleum and Energy, said the department may publish a statement later today.
Silex Gas Chief Executive Officer Kurt Georgsen said the company will decide whether to join Njord at a board meeting to be held in the next “week or two.” Solveig CEO Trygve Pedersen and Infragas CEO Knud Noerve didn’t immediately respond to messages when Bloomberg News called seeking comment.
To contact the editor responsible for this story: Jonas Bergman at email@example.com