NORWAY has signaled its readiness to negotiate with Europe to address the energy crisis and increase its natural gas exports to the continent. However, the European Union needs to adapt its current gas pricing structure to a changing market environment, according to a leading Norwegian energy strategist. "The European Union needs to enter into long-term [natural gas] contracts with a different kind of pricing structure," UK-based Norwegian gas and energy consultant Morten Frisch told Upstream. "The gas price and gas price volatility we have been facing in Europe for a year stem from a hub-based gas trading and pricing system (that) was forced upon gas companies.... by the European Commission," he said, referring to reforms of more than two decades ago. The EU is actively seeking ways to ease the impact of the energy crisis and secure its long-term energy supply as member nations look to reduce reliance on Russian gas supplies following Russia's invasion of Ukraine.
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