A proposed $5 billion export route that would connect gas fields in the Barents Sea, Northern Norway, to European markets is being reconsidered as a solution to Europe's gas crisis, according to a report by Wood Mackenzie. The 800-kilometer pipeline has gained traction due to Russia's invasion of Ukraine, but it still faces challenges before receiving approval from Oslo.

While the Barents Sea basin has enough gas resources to fill the pipeline, the project's costs make it more expensive than alternative LNG imports. However, gas from the area offers a cleaner alternative, and the development would adhere to strict Norwegian environmental regulations. State funding or the implementation of a Carbon Border Adjustment Mechanism by the European Union could increase cost competitiveness.

The report emphasizes that the pipeline would help mitigate Norway's declining gas production but cautions that it would not be a game-changer. To fully realize the basin's potential, a larger pipeline would be necessary to incentivize high-impact exploration.

Currently, gas from the Barents Sea is produced in the Snøhvit Area and transported via pipeline to the Hammerfest LNG facility. However, there is no direct pipeline connecting the Barents Sea gas resources to the main Norwegian pipeline network.