Equinor has agreed to supply Germany’s state-owned integrated midstream energy company SEFE GmbH (Securing Energy for Europe) with 10 billion cu m/year (bcmy) of natural gas from the Norwegian continental shelf beginning Jan. 1, 2024, until 2034, the equivalent of one-third of German industrial demand.
The agreement includes an option for an additional 5 years, at terms reflecting market prices, the operator said in a release Dec. 19. The 5-year option is for 29 bcm over the period.
The gas will be delivered to Trading Hub Europe (THE) in Germany, Title Transfer Facility (TTF) in the Netherlands and at the National Balancing Point (NBP) in the UK.
In addition, the companies also signed a non-binding letter of intent with the intention that SEFE will become a long term off-taker of giga-scale, low-carbon hydrogen supplies from projects that Equinor is planning on the continent and in Norway.
The ambition is to supply low-carbon hydrogen to SEFE at industrial scale, starting from 5 TWh/year from 2029 and ramping up to 40 TWh/year from 2050 towards 2060.