Equinor Signed Long-Term Natural Gas Sales Agreement with German SEFE

SEATTLE (Oil Monster): Equinor has entered into long-term natural gas supply contract with Germany’s state-owned Securing Energy for Europe (SEFE). The agreement was signed in Berlin between Equinor’s CEO Anders Opedal and SEFE’s CEO, Dr. Egbert Laege on 19th December, 2023.

Under the agreement, the company will supply approximately 10 billion cubic metres (bcm) of natural gas per year starting from 2024 until 2034, with an option to extend it for additional five-year period. The five-year option is for supply of around 29 bcm over the period.

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The gas will be delivered to Trading Hub Europe (THE) in Germany, TTF in the Netherlands and the National Balancing Point (NBP) in the UK.

In addition, the two companies signed a non-binding letter of intent (LoI) to pursue large scale low-carbon hydrogen supplies commencing in 2029 until 2060. The proposed industrial scale supply will start with 5 TWh per year from 2029, which in turn will be ramped up in phases up to 40 TWh per year from 2050 towards 2060.

The agreements are expected to help Europe meet its demand for long-term reliable supply of energy and boost its decarbonization efforts. Moreover, they will contribute to energy security for Germany and Europe.