Germany – Equinor and Germany’s state-owned energy company, SEFE (Securing Energy for Europe), have entered into extensive gas sales agreements that span over a decade and have set the stage for substantial hydrogen supplies.
The agreements, signed in Berlin, mark one of the largest gas sales pacts in Equinor’s history and signal a strong commitment to reshaping the energy landscape.
Equinor is set to supply SEFE with a staggering 111 terrawatt hours (approximately 10 billion cubic meters) of natural gas annually from January 1, 2024, until 2034, with an option to extend for another five years. These volumes represent a significant portion, approximately one third, of Germany’s industrial demand. The inclusion of a 5-year option for an additional 319 TWh over the period underscores the long-term nature of the partnership.
Hydrogen deal
The collaboration doesn’t stop at gas; the companies have also signed a non-binding letter of intent, expressing the intention for SEFE to become a long-term off-taker of giga-scale, low-carbon hydrogen supplies from Equinor. This move is slated to start in 2029 and extend toward 2060, contributing to Europe’s decarbonization efforts on an unprecedented scale.
The potential collaboration on hydrogen includes Equinor supplying SEFE with low-carbon hydrogen from projects planned both on the continent and in Norway. The ambition is to provide SEFE with industrial-scale low-carbon hydrogen, starting at 5 TWh per year from 2029 and gradually increasing to an impressive 40 TWh per year from 2050 towards 2060.
The gas, a significant component of the agreement, will be delivered to key European trading hubs, including Trading Hub Europe (THE) in Germany, Title Transfer Facility (TTF) in the Netherlands, and the National Balancing Point (NBP) in the UK, emphasizing the widespread impact of this collaboration.
Photo: Axel Kammann / Equinor
