OSLO - Norwegian energy companies are likely to conclude more long-term gas contracts with European customers, something the government had encouraged them to do, Norwegian Prime Minister Jonas Gahr Stoere told Reuters on Tuesday.

"It looks like there will be more of those, more agreement for such deals," Stoere said.

Speaking a day after the European Union set a price cap on the gas it buys, Stoere in an interview also said he did not expect more Norwegian liquefied natural gas to be exported outside Europe as a result of the decision by EU countries.

Norway has in the past year overtaken Russia as Europe's biggest gas supplier, with state-controlled Equinor as the number one exporter.

"Norway does not benefit from high and unstable gas prices in Europe," Stoere said.

"It affects our power prices and it is a challenge for our households and companies, and me politically," he added.

(Reporting by Gwladys Fouche, editing by Terje Solsvik)