Equinor Signs Historically Large Sales Agreement on Gas
Equinor and Germany’s SEFE have entered into a monumental long-term gas sales agreement and marking a significant step in the pursuit of large-scale hydrogen supplies.
“This is a response to Europe’s need for long-term, reliable supply of energy and a viable route to decarbonization at scale”, says Equinor’s CEO Anders Opedal.
Under the agreements Equinor will supply Germany’s state-owned energy company SEFE (Securing Energy for Europe) with 111 terrawatt hours (ca 10 billion cubic meters - bcm) of natural gas per year from 2024 until 2034.
The annual volumes are equivalent to one third of German industrial demand.
"Equinor and Germany have enjoyed a strong energy partnership ever since the start of Norwegian gas exports in 1977. The total volumes we have agreed make this one of the largest agreements we have made as a company, and the supplies will contribute to energy security for Germany and Europe. I am also pleased to sign the letter of intent to explore opportunities to supply SEFE with low-carbon hydrogen at industrial scale for decades to come, enabling European industries and flexible gas power plants to accelerate decarbonisation”, says Opedal.
Working in the intersection of the energy transition
The EU's climate goals are ambitious, seeking to drastically cut emissions by 2030 and achieve climate neutrality by 2050.
– This agreement between Equinor and SEFE not only recognizes the need to meet Europe's immediate energy requirements but does so while navigating the complex energy trilemma, says Owe Hagesæther, CEO of GCE Ocean Technology.
– It ensures energy security through a steady supply of natural gas, addresses affordability by providing a cost-effective energy solution in the short term, and contributes to environmental sustainability by setting a clear pathway towards renewable energy sources like hydrogen.
Natural gas, as supplied in this agreement, is often viewed as a 'transition fuel' in the shift towards renewable energy. It emits less CO2 compared to coal and oil when burned, making it a more climate-friendly option in the short term.
– This agreement aids in gradually weaning off more carbon-intensive fuels while renewable energy capacities are ramped up across Europe, says Hagesæther.
– By supplying natural gas today and focusing on hydrogen for tomorrow, Equinor are really working in the intersection of the energy transition, he ends.
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