Equinor and OMV Strike Long-Term Gas Deal

According to Equinor spokesperson, the contract is priced at market terms.

SEATTLE (Oil Monster): Equinor has reached a last-minute long-term gas sales agreement with Australia-based OMV. The five-year agreement is for a period of five years towards sale of 12 terrawatt hours (TWh) of gas per year, which is equivalent to approximately 1.14 billion cubic metres. The deal secures additional gas supplies to OMV, which has been on a diversification spree.

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According to Equinor spokesperson, the contract is priced at market terms. However, the valuation of the supply agreement was not disclosed. The contract builds upon the long-standing partnership between the two companies and will add to existing gas supply volumes. The gas will be delivered at Germany’s virtual trading hub THE (Trading Hub Europe), it said.

Commenting on the development, Helge Haugane, Equinor’s Senior Vice President of Gas & Power said that it is extremely happy to announce another bilateral agreement between the two companies. The company prides itself to be a long-term, reliable natural gas supplier to the European region, he added.

Earlier in July this year, OMV had entered into a deal with BP towards supply of 1 million tpa of LNG for a period of 10 years starting from 2026.