Equinor Signs Natural Gas Supply Agreement With Germany’s RWE
RWE and Equinor have signed a new supply contract for between 10 and 15 TW-h of natural gas per year from now until 2028. The new bilateral agreement builds upon the long-standing relationship between RWE and Equinor. The contract is priced at market terms and the gas will be delivered at Germany’s virtual trading hub Trading Hub Europe.
“Germany and Norway have been energy partners ever since Norwegian gas exports first started more than 45 years ago,” said Helge Haugane, Equinor’s senior vice president of Gas & Power. “I am very pleased that we continue to develop this partnership and that we can announce another bilateral agreement between Equinor and RWE, one of many companies that see Norwegian gas as an enabler for energy security as well as of the energy transition.”
Earlier this year, RWE and Equinor announced their 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 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.
Key elements in the value chain will be exports of low-carbon hydrogen from Norway to Germany which could help speed up the development of a hydrogen economy. Gradually, green hydrogen will also be produced using power from wind farms along the pipeline route.
