Germany Secures Major Gas Supplies from Equinor
German energy company Sefe and Norwegian group Equinor have struck a significant deal - a long-term gas supply agreement. This deal, according to Equinor's Group CEO Anders Opedal, is one of their biggest ever. The agreement includes Equinor supplying a whopping 111 terawatt hours of gas between 2024 and 2034. That's roughly equivalent to 10 billion cubic meters of natural gas. Standard market prices will be paid for these deliveries, and the deal includes an option for an additional five years with 319 terawatt hours.
Sefe, formerly known as Gazprom Germania, has faced challenges in the past, particularly due to the Russian gas supply freeze. Since nationalization, the company, headquartered in Berlin, has around 1500 employees and is a major player in Germany's gas market, alongside Uniper and VNG subsidiary.
Moreover, the two companies also signed a letter of intent, making Sefe a long-term customer of Equinor's low-CO2 hydrogen between 2029 and 2060. The aim is to initially supply 5 terawatt hours annually, rising to 40 terawatt hours annually from 2050 to 2060.
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This agreement not only strengthens Germany's energy security but also aids its transition to low-CO2 sources. The long-term hydrogen supply ensures a reduced dependence on fossil fuels, enhanced energy security, and support for industrial transition. It also integrates with renewable energy strategy, drives infrastructure development, leads to carbon emissions reduction, and potentially offers economic benefits, all contributing to Germany's overall carbon-neutral goals.
