Equinor signed a 15-year agreement with Uniper to supply natural gas to Germany starting January 1, 2027. The contract covers more than 30 terawatt-hours (TWh) annually, equivalent to approximately 2.8 billion cubic meters of gas. The supply will continue until the end of 2041 and will strengthen the presence of Norwegian gas in Germany, Equinor’s largest natural gas market. Prices will be linked to market conditions, while the remaining commercial terms will remain confidential.
Equinor will deliver more than 30 TWh of gas per year
According to the announced conditions, the gas natural it will be delivered to Trading Hub Europe, the entity responsible for managing the German gas market. Furthermore, the start of deliveries will have historical significance for the energy relationship between the two countries. 2027 will mark 50 years since Norwegian gas exports to Germany began in 1977.
Germany remains the main market for natural gas traded by Equinor, the new contract with Uniper guarantees a considerable volume of supply for more than a decade and brings predictability to German energy supplies. Meanwhile, Michael Lewis Uniper’s CEO emphasized the importance of maintaining long-term agreements to ensure secure and competitive energy markets. He believes the contract strengthens German energy supply for years to come.
Equinor and Uniper will study lower-emission gas solutions
Alongside the supply contract, the companies signed a letter of intent to explore potential transactions related to sustainability attributes associated with the gas covered by the agreement. Uniper also sees opportunities for cooperation with Equinor to advance lower-emission gas solutions for its customers in Germany.
In addition, Anders Opedal Equinor’s president and CEO, noted that the agreement reflects European demand for reliable, long-term supplies from the Norwegian continental shelf. According to the executive, these resources provide energy and raw materials for industry with a lower carbon footprint than other gas supply alternatives.
Norway strengthens its energy ties with Europe
The contract with Uniper comes as Equinor expands other energy supply agreements within Europe. The company recently announced an agreement with ORLEN to supply more than nine million metric tons of Norwegian oil per year for three years.
From September onwards, crude oil from the Johan Sverdrup field will be allocated to the refineries from ORLEN in Poland, Lithuania, and the Czech Republic. The agreement also allows for the incorporation of other grades of oil produced on the Norwegian continental shelf.
ORLEN anticipates that Norway could account for up to a quarter of its annual demand thus, the gas and oil agreements demonstrate the continued importance of Norwegian energy resources within European supply.
Source: Rigzone
Photo: Shutterstock
