Equinor, Germany's SEFE Enter Natural Gas Supply Agreement

By Pierre Bertrand

Equinor and Securing Energy for Europe, or SEFE, entered into a long-term natural gas deal and have signed a non-binding letter of intent to have SEFE be an off-taker of hydrogen.

The natural gas agreement means Equinor will supply around 10 billion cubic meters of natural gas per year to the German state-owned energy company starting next month and lasting until 2034, Equinor said.

The annual amount of natural gas supplied under the deal is equivalent to one third of Germany's industrial demand, the Norway-based energy company said Tuesday.

The agreement includes a five-year extension option for a total of around 29 billion cubic meters of natural gas over the period, Equinor said.

The companies also signed a non-binding letter intending for SEFE to become a long-term off-taker of so-called low-carbon hydrogen from Equinor, starting in 2029 and lasting until 2060.

Equinor said it aims to initially supply 5 terrawatt hours per year of low-carbon hydrogen to SEFE from 2029, increasing it to up to 40 terrawatt hours per year from 2050 onwards.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

December 19, 2023 06:34 ET (11:34 GMT)

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