Germany’s state-owned energy firm SEFE has secured a €50bn gas agreement with Equinor, under the terms of which the Norwegian company will supply about 10 bcm/year of natural gas to SEFE, from January 2024 until 2034. The deal carries an option for another five years covering 29 bcm, and a non-binding letter of intent (LoI) was also signed for possible hydrogen deliveries (5 TWh/year from 2029 and ramping up to 40 TWh/year from 2050 towards 2060).
Around 90% of the gas volume SEFE will get through existing pipelines are indexed on TTF and THE gas trading hubs to be available for the German and Dutch markets. The deal strengthens Norway's position as Germany's top supplier of natural gas and marks a milestone in Germany's efforts to replace its former long-term gas supplier Russia.
Germany’s gas consumption amounted to over 83 bcm in 2022 (a 15% decrease compared to 2021, when it reached 98 bcm).