These market developments in the European Union towards liberalisation will put some pressure on Norway's current system. The impact is likely to be positive, if Norway is prepared for it. Norwegian producers may therefore benefit through a larger share of the final retail price of gas, even if the retail price is also lowered by competition. A true competitive market will put a value, and hence a price, on security of supply. In an uncompetitive market, this value may be hidden or distorted.
Competition is also likely to generate more customers for Norwegian gas.
Whereas many of the large gas contracts in Europe have been for physical delivery, options to swap gas are multiplying. Physical integration of European gas transport systems is likely to continue, in part due to the different values for gas based on perceptions of security of supply. These developments increase opportunities to sell Norwegian gas. Norway therefore needs to keep close to the European Union debate on gas liberalisation and to seek where possible to influence that debate. As the liberalisation process takes hold, Norway will need to take very careful stock of its arrangements for marketing gas so as to reap the benefits from the new situation in the European market.