After 1986, the sale of Norwegian gas was coordinated through the Gas Negotiating Committee (GFU), where the petroleum companies negotiated collectively with European buyers. This arrangement gave Norway weight in the market and made it possible to control both the pace and the volume of gas exports.

The European Union was working towards greater competition, open markets and less national control. The gas market was gradually liberalised, and large national arrangements were challenged. Solutions which had worked well during a build-up phase thereby became more difficult to defend in a market to be opened up.

At the same time, Statoil was heading for a stock market listing which would convert it from a wholly state-owned instrument to a commercial energy company with private shareholders. This raised a fundamental issue for the Norwegian gas system: could one and the same company compete in the market while playing a key role in managing a common transport system?

The answer went without saying: no.

In 2001, the decision was taken to wind up the GFU, which now conflicted with the EU’s liberalised gas market. Along with Statoil’s listing, this prompted the establishment of two new state-owned companies with clearly differentiated responsibilities. One was Petoro, charged with managing the state’s direct equity interests in the petroleum sector. The other was Gassco.

“Monopolies are a thing of the past,” said Gassco’s first CEO, Brian Bjordal.“Monopolies are a thing of the past,” said Gassco’s first CEO, Brian Bjordal.

The company he was appointed to lead took over responsibility for operating and developing the whole Norwegian gas transport system. Roles in Norway’s petroleum sector were thereby clearer than ever. Companies producing and selling would compete in the market. The operator of the transport system would be a neutral player to the benefit of all.

Petoro and Gassco were a response to developments both in Europe and at home. As the gas market opened up to competition, the transport system had to be organised in a way which ensured equal access for all players. Gassco owned neither the gas nor the infrastructure, butwas responsible for keeping the system functioning as operator and architect of the machinery which ensured that the gas was transported securely from seller to buyer.

The task was specific and the starting point solid. It included several thousand kilometres of pipelines on the seabed, offshore hubs such as Draupner and Heimdal, land-based processing facilities at Kårstø and Kollsnes and terminals on the continent. Built up over decades, this network was now to be operated securely, efficiently and equitably as an integrated whole.

At the same time, new roles had to be established, responsibilities clarified and routines put in place. And everything had to work from day one to ensure safe and reliable deliveries. Over time, too, Gassco’s role as system architect – planning the future development of the transport system – became increasingly important.

The company’s role has therefore evolved with its responsibilities, as has the infrastructure. Norway was connected directly to the UK with the Langeled pipeline. The Nyhamnaprocessing plant was built to handle gas from Ormen Lange, while Baltic Pipe later opened a new route for Norwegian gas to Poland. The landfall site for Statfjord gas at Kalstø was upgraded, with an old culvert being replaced by a tunnel. At Heimdal, the riser platform was removed and replaced with subsea installations. Draupner was upgraded to a hub for gas from the northern North Sea. A new terminal was built in Emden. And everything has naturally needed to be maintained.

“As the years pass, facilities age and the need for maintenance increases,” says Kristin Kinn Kaste, who has worked at Gassco since its creation and is now a member of its executive management. “Conditions also change, not least as a result of shifting gas flows. The system must therefore be continuously adapted.

“Norway has accomplished a great deal in this industry,” she adds. “I’d almost say we’ve accomplished the impossible, such as highly complex subsea projects. We’ve achieved these results by challenging each other and by sticking together, even in demanding times. It’s a source of pride to be part of something so far-reaching, and it’s about delivering on our societal mission.”

Gassco was established at a time when markets were opened up and roles had to be redefined. Yet its core task today is the same as it was at the start 25 years ago: safe, reliable and efficient gas transport every single day through what has become the world’s largest integrated offshore gas transport system – and the veritable foundation for Norway’s status as a gas nation.