Equinor Energy AS has agreed to a 5-year deal to supply Germany’s RWE with Norwegian natural gas. Equinor will supply equivalent to 1-1.5 billion cu m/year (bcmy) of natural gas (the equivalent of 10-15 TWh/year) from now until 2028.
The contract is priced at market terms and the gas will be delivered at Germany’s virtual trading hub THE (Trading Hub Europe).
Earlier this year RWE and Equinor detailed a plan to develop large-scale value chains “to ensure security of supply and reduce emissions in response to the German-Norwegian Partnership on Climate, Renewable Energy and Green Industry,” the companies said in a joint release Oct. 30 (OGJ Online, Jan. 5, 2023).
The first step is to invest in and develop gas fired power plants in Germany that are ready to use hydrogen as feedstock as soon as it becomes available on an industrial scale in the country. These plants are also subject to the power plant strategy announced by the German government, which aims to create a suitable regulatory framework for new gas-fired power plants, the companies said.