Equinor and Germany’s SEFE enter long-term gas sales agreements and pursue large scale hydrogen supplies

In Norway, Equinor said it will supply Germany’s state-owned energy company SEFE with 111 terrawatt hours of natural gas per year from 1 January 2024 until 2034, plus an option for another 5 years, at terms reflecting market prices. The 5-year option is for a total of 319 TWh over the period. The companies also signed a non-binding letter of intent (LoI) with the intention that SEFE will become a long term off-taker of giga-scale, low-carbon hydrogen supplies from Equinor starting in 2029 and continuing towards 2060. “This is a response to Europe’s need for long-term, reliable supply of energy and a viable route to decarbonization at scale”, said Equinor’s CEO Anders Opedal. “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”, said Opedal.

More on the story.