NJORD – Consultation paper regarding reduced capital element tariff received

 

Njord Gas Infrastructure AS (the ‘Company’), as owner
in the Gassled joint venture, today received a
consultation paper from the Ministry of Petroleum and
Energy (‘MPE’) regarding certain proposed changes to
the Tariff Regulations (Regulation no. 1724 dated 20.
December 2002 – relating to the stipulation of
tariffs for certain facilities).

In the consultation paper, the MPE proposes to reduce
the capital element (‘K’) of the Gassled tariff by
90% for a majority of the tariff areas. The proposal
is based on tariff reductions being effective only
for bookings made from and including the spring of
2013. No changes are proposed for existing bookings.
The operational expense element (‘O’) and the capital
investment element (‘I’) of the tariff will under the
proposal remain unchanged.

The proposal is subject to a two month consultation
period for stakeholders to respond. Thereafter, the
MPE will evaluate responses before deciding whether
to implement the new tariff regulation. The proposal
contemplates implementation by 1 May 2013.

The Board of the Company is concerned about the
implications of the proposal for the Gassled owners
and the long-term development of the gas
transportation infrastructure on the Norwegian
continental shelf.

Significant parts of the Gassled system are already
booked for several years to come and so, the
potential implications for the Company are not
substantial in the short to medium term, but will
increase over time. However, based on a preliminary
analysis of the implications of the proposal, the
Company forecasts that it will generate sufficient
cash to service its debt obligations.

The Company is now thoroughly assessing the
implications of the proposal and will respond to the
MPE in due course. The Company will continue to
inform its investors as appropriate.

Dated: 15 January 2013
Njord Gas Infrastructure AS

The information in this announcement is subject to
the disclosure requirements of the Norwegian
Securities Trading Act section 5-12 and/or the Oslo
Børs – Continuing Obligations.

Njord Gas Infrastructure AS is headquartered in
Stavanger, Norway. It invests in Norwegian gas
infrastructure and currently holds an 8.036%
participating interest in Gassled. For more
information, please refer to http://njordgasinfra.no/.

For information, please contact:

Birte Norheim, Finance Director
+47 51911064 office
+47 95293321 mobile