The Norwegian government has intervened to end a strike by oil and gas workers who threatened to cut production at a time when Europe is fighting for supplies to make up for cuts in Russian production.
Labor Minister Marte Mjøs Persen summoned oil companies and workers on Tuesday afternoon and announced that labor action had ended.
The strike had reduced gas supplies to the UK and much of continental Europe and had caused gas prices to rise to their highest level in four months. The Norwegian government has the authority to intervene in labor disputes under certain conditions. It was estimated that the strike would have reduced Norway’s gas production by almost 60 per cent over the weekend.
“When the conflict can have such great social consequences for the whole of Europe, I have no choice but to intervene in the conflict,” Persen said in a statement. “It’s unjustifiable to let gas production stop to such an extent.”
Audun Ingvartsen. union leader Lederne told Reuters that workers “would return to work as soon as possible.”
Workers had threatened to increase the closures of oil and gas fields over the course of the week, and gas transmission system operator Gassco warned on Tuesday that Norwegian supply to the UK could be cut off completely over the weekend.
Although relatively low gas demand during the summer months meant that immediate shortages were unlikely as a result of the strike, it was feared that it would further hamper Europe’s efforts to fill facilities. gas storage ahead of what is expected to be a harsh winter.
Russia, which before the invasion of Ukraine supplied about 40 percent of Europe’s gas, has cut supplies, reducing the capacity of the key North Stream 1 pipeline to Germany by 60 percent.
Any loss of Norwegian supplies would have hampered already challenging efforts to fill storage facilities, with Europe facing the prospect of gas shortages and rationing this winter.
The Norwegian Foreign Ministry said in a statement after the end of the strike that the country “must do everything in its power to help maintain European energy security and European cohesion against the Russian war.” “.
The UK has shipped as much gas as possible through pipelines to Belgium and the Netherlands, including excessive supplies from Norway and deliveries to the UK in the form of shipping liquefied natural gas.
Norwegian oil and gas workers were on strike over concerns about wage increases below inflation at a time when oil and gas companies are making record profits from rising prices.
The dispute will now move to what the Norwegian government called a “mandatory wage board”.
The UK government has said it is comfortable with the country having enough gas supplies, but has faced industry pressure worried about possible shortages this winter if Russia completely cuts off flows to Europe.
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The group of UK energy-intensive manufacturers, such as the steel and chemical industries, will meet with Trade Secretary Kwasi Kwarteng on Wednesday and has indicated it is seeking greater clarity on whether the industry could face the gas rationing this winter.
The business department has highlighted the “diverse” range of UK supply options, including imports from Norway and its holding company, Europe’s second largest LNG import capacity, as well as domestic production from the UK. North.
Norway became the UK’s largest supplier last year, surpassing domestic production for the first time.
Continental European countries have already urged households and industry to reduce their use in the event that Russia cuts gas exports to the continent, but the UK government has downplayed concerns so far.