Equinor, the Norway-based energy company, has entered into a significant long-term natural gas agreement with SEFE (Securing Energy for Europe). Under this deal, Equinor will supply approximately 10 billion cubic meters of natural gas per year to the German state-owned energy company, starting next month and continuing until 2034. This annual amount of natural gas is equivalent to one third of Germany's industrial demand.
Furthermore, the agreement includes a provision for a potential five-year extension, which would result in a total supply of around 29 billion cubic meters of natural gas over the specified period.
SEFE to Become Off-Taker of Low-Carbon Hydrogen
In addition to the natural gas deal, Equinor and SEFE have also signed a non-binding letter of intent. The purpose of this letter is to pave the way for SEFE to become a long-term off-taker of low-carbon hydrogen from Equinor. If finalized, this arrangement would commence in 2029 and persist until 2060.
Equinor has ambitious plans to initially supply 5 terrawatt hours per year of low-carbon hydrogen to SEFE, starting in 2029. This quantity is expected to gradually increase, reaching up to 40 terrawatt hours per year from 2050 onwards.
These agreements between Equinor and SEFE highlight their commitment to sustainable energy solutions and pave the way for a more environmentally friendly future.
