Equinor to supply Norwegian gas to Ørsted to shore up Denmark supply

Equinor Energy AS has entered into an agreement with Ørsted to supply Norwegian gas to Denmark via the 10-billion cu m/year Baltic Pipe gas pipeline.

The agreement, which will run Jan. 1, 2023, to Apr. 1, 2024, is for total supplied gas volumes equating to 8 TWh, about one quarter of the expected total Danish gas consumption, Ørsted said in a release Oct. 27.

The agreement ensures a stable supply of Norwegian gas when Tyra field isn’t supplying gas to Denmark, said Søren Thygesen Blad, head of gas portfolio management, Ørsted.

With the deal, “we’ll have more than enough gas to meet the gas demand of our customers for the coming and next winter, enabling us to stock up our Danish gas storage facilities over the summer,” he continued.

Supplied gas from the deal with Equinor, plus production from INEOS-operated South Arne field and from biogas, Ørsted said it has more than covered the consumption of its own customers, which are business customers in Denmark and Sweden.