NJORD - Consultation paper regarding reduced capital element tariff received

1/15/2013 5:40 AM EST

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.

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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