Statoil Scraps $324 Million Norwegian Sea Pipeline on Costs

Statoil ASA, Norway’s biggest energy company, canceled plans to build a pipeline tying the Kristin natural-gas field to the planned $4 billion Polarled tube in the Norwegian Sea because of costs and volume uncertainties.

Scrapping the 2 billion-kroner ($324 million) project won’t affect the Polarled pipeline, the Stavanger-based company said in a statement today. Kristin gas-export project represented less than 5 percent of volumes planned to pass through Polarled, it said. Costs included modifications to the Kristin platform, Statoil spokesman Morten Eek said in a phone interview.