Europe eyes Norwegian gas supplies

BRUSSELS, Oct. 7 (UPI) -- The European Investment Bank aims to diversify the European energy sector through a deal to deliver gas to EU markets from Norway, a bank official said.

The EIB said it would provide nearly $210 million to DONG Energy, one of the largest energy groups in northern Europe, to develop the Trym natural gas field in the Norwegian waters of the North Sea.

The EIB financing goes toward drilling and expanding underwater pipelines. Gas will be transferred onshore to the European Union through existing pipeline networks.

"We are delighted to support this project, which contributes toward EU goals of secure and diverse energy supply and makes intelligent and cost-effective use of existing infrastructure," said EIB Vice President Plutarchos Sakellaris in a statement.

The Trym field was discovered in 1989 but not explored because of low natural gas prices.

Europe is trying to break the Russian grip on the energy sector. European consumers were left in the cold in January 2009 after Russian gas giant Gazprom cut gas supplies to Ukraine over debt and contract disputes.

Russian sends around 80 percent of its gas to Europe through the Ukrainian gas transit system.