Equinor and Germany's SEFE seal long-term gas purchase deals and explore expansive hydrogen supply initiatives
Equinor and SEFE Sign Long-Term Gas and Hydrogen Supply Agreements
Equinor, a Norwegian energy company, and Securing Energy for Europe GmbH (SEFE) have agreed to a significant long-term partnership. This partnership includes the supply of natural gas and the planned development of large-scale hydrogen supplies.
Under the terms of the agreement, Equinor will provide up to 23 terawatt hours (TWh) of natural gas annually, approximately 2 billion cubic meters per year, for a decade starting from October 1, 2025. The main customer for this natural gas will be BASF, a major German chemical company.
The natural gas deliveries are part of Equinor's efforts to support energy security in Europe with low-carbon-intensity gas sourced from Norway. This aligns with sustainability goals for industrial customers like BASF. The gas contract operates on market terms and underpins BASF's strategy to diversify its energy and raw materials base for chemical production.
In addition to natural gas, Equinor and SEFE aim to pursue large-scale hydrogen supplies. The exact volumes, delivery points, and detailed timelines for hydrogen have not been provided, but the ambition is clear: to supply low-carbon hydrogen to SEFE at industrial scale, starting from 5 TWh per year from 2029 and ramping up to 40 TWh per year from 2050 towards 2060.
The natural gas will be delivered to key European hubs, including Trading Hub Europe (THE) in Germany, Title Transfer Facility (TTF) in the Netherlands, and the National Balancing Point (NBP) in the UK.
Dr Egbert Laege, CEO of SEFE, stated that the agreements bring them a big step closer to their common goal of decarbonizing the energy sector. He added that the procurement of natural gas from the Norwegian continental shelf will provide a sustainable and future-proof supply for European and German customers in the household and industrial sectors.
The agreements also focus on joint business opportunities related to transport and storage of hydrogen for the future. SEFE could be a long-term off-taker of low-carbon hydrogen from projects that Equinor is planning on the continent and in Norway. The SEFE Group's storage company Astora could be a key building block in the potential collaboration on hydrogen.
These agreements are a response to Europe's need for long-term, reliable supply of energy and a viable route to decarbonization at scale. Anders Opedal, Equinor's CEO, stated that the agreements will enable European industries and flexible gas power plants to accelerate decarbonization.
The latest news regarding the hydrogen market can be found at our website. For more information about Equinor and SEFE's partnership, stay tuned for further updates.
- The hydrogen economy is set to expand with Equinor and SEFE aiming to pursue large-scale hydrogen supplies, which could potentially supply low-carbon hydrogen to SEFE at industrial scale, starting from 5 TWh per year from 2029 and increasing to 40 TWh per year from 2050 towards 2060.
- The hydrogen and finance sectors intersect in the long-term agreements between Equinor and SEFE, as SEFE could be a long-term off-taker of low-carbon hydrogen from projects that Equinor is planning, positioning SEFE as a key player in the future hydrogen industry.
- Technology plays a crucial role in these agreements as they focus on joint business opportunities related to transport and storage of hydrogen for the future, with Astora, SEFE's storage company, potentially being a key building block in this potential collaboration.
