An agreement stipulates that the Equinor company from Norway will supply 111 terawatt hours of gas to Germany in the coming years. What needs can this cover?
The state-owned German energy company Sefe and the Norwegian group Equinor have agreed on long-term gas deliveries. It is one of the largest gas agreements that Equinor has ever concluded, said CEO Anders Opedal.
The agreement calls for Equinor to supply a total of 111 terawatt hours between 2024 and 2034, equivalent to around 10 billion cubic meters of natural gas. Standard market prices should be paid for deliveries. According to the announcement, the annual quantities correspond to a third of German industrial requirements. There is an option for another five years with 319 terawatt hours.
The two companies also signed a memorandum of understanding for Sefe to become a long-term buyer of Equinor’s low-carbon hydrogen between 2029 and 2060. The aim is to initially deliver five terawatt hours per year, which will be increased and reach up to 40 terawatt hours per year between 2050 and 2060.
Sefe is a former subsidiary of the Russian energy company Gazprom, which is now owned by the federal government. The abbreviation stands for “Securing Energy for Europe” (German: “Securing Energy for Europe”). Equinor is one of the largest oil and gas producers in Europe and is two-thirds owned by the Norwegian state.
Source: Stern
