Norway workers' strike may completely cut off gas supplies to UK within days: Report

Norway warned on Tuesday that the ongoing workers' strike might totally cut off the gas supplies to the United Kingdom as early as this weekend which could push the European energy prices to their highest levels in four months. Norwegian pipeline operator Gassco told the Ft that "in the worst-case scenario, supplies to the UK could be completely halted."

The Norwegian offshore workers have been protesting against the government demanding higher wages as oil prices have skyrocketed due to global inflation. They have organized the nationwide strikes that are feared to disrupt oil and gas output to the EU and the UK, the union leading the industrial action told Norwegian press reporters. 

Equinor shuts three oil fields, gas prices skyrocket by 9%

Norway's energy giant Equinor ASA has recently announced the closure of three oil fields after its employees declared a strike. The employees are threatening to shut down a key distribution centre that supplies Britain with gas in a move that could further push the energy prices soaring. Nearly 60% of gas exports from the Norwegian continental shelf (NCS) have been affected due to the recent workers' strike. This has caused consequences such as a daily revenue loss of NOK 1.8 billion, as well as a halt in the production of 89,000 barrels of oil per day, according to Ft's analysis. This has also sent the gas prices to increase by 9%.

Norway's labour ministry said in a statement that it is monitoring the situation “closely” and declared it will intervene.  Equinor said in a report that the oil and gas output will be reduced by 89,000 barrels to the gas output of a total of 292,000 barrels of oil equivalent per day.

On Tuesday, reports also emerged that Norway's government imposed a "forced settlement" to the longstanding dispute between offshore oil and gas workers and energy executives, calling an end to the strike. It, however, remains unclear if the strikes have totally subsided in the Scandinavian country that now fears rapid gas shortages in Europe, especially at a crucial time when Russia has cut off the gas export to what Putin labels as the US-allied "unfriendly countries." Norway’s Gassco, the state-owned pipeline operator, told the newspaper that in a worst-case scenario, "deliveries to the UK could stop totally."