Germany concludes a maxi deal worth 50 billion euros with the Norwegian Equinor
German state company Securing Energy for Europe (Sefe) and Equinorsigned on Tuesday one of the Norwegian energy giant's largest natural gas supply deals ever, worth an estimated $55 billion, 50 billion euros . A huge agreement that binds Germany and Norway closely.
Equinor will supply Germany's Sefe with around 10 billion cubic meters (bcm) of natural gas per year from January 1, 2024 to 2034, plus an option for another five years, on terms that reflect market prices, the major said Norwegian.
Annual volumes are equivalent to a third of German industrial demand, Equinor noted, adding that “following the Troll field gas sales agreement in 1986, this is one of the largest gas sales agreements Equinor has entered into as society".
Sefe, wholly owned by the German government, was created last year after Germany rescued a former Gazprom unit it had expropriated in April with a multibillion-dollar loan. Gazprom Germania has been renamed Securing Energy for Europe GmbH (Sefe), to secure energy supplies to Germany and Europe, the government said last summer.
“The total volumes we have agreed make this deal one of the largest we have concluded as a company and the supplies will contribute to the energy security of Germany and Europe,” said Anders Opedal, chief executive officer of Equinor.
Egbert Laege, CEO of Sefe, said: “The supply of natural gas from the Norwegian continental shelf ensures a sustainable and future-proof supply for European and, in particular, German customers in the domestic and industrial sectors.”
The natural gas will be delivered to the Trading Hub Europe (THE) in Germany, the Title Transfer Facility (TTF) in the Netherlands and the National Balancing Point (NBP) in the UK.
The agreement signed today also includes a non-binding letter of intent for Sefe, which will become a long-term off-taker of giga-scale low-carbon hydrogen supplies from Equinor starting in 2029 and continuing until 2060.
At the same time, Germany replaced its dependence on Russia with that of Norway: a less militarily demanding country, but dependence is still dangerous.
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The article Germany concludes a maxi deal worth 50 billion euros with the Norwegian Equinor comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-germania-conclude-un-maxi-accordo-da-50-miliardi-di-euro-con-la-norvegese-equinor/ on Wed, 20 Dec 2023 07:00:18 +0000.