Germany’s mega-deal with Norway to replace Russian gas [Gas in Transition]

Germany’s mega-deal with Norway to replace Russian gas [Gas in Transition]

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Natural Gas News
Germany’s mega-deal with Norway to replace Russian gas [Gas in Transition]

Summary

Undoubtedly the long-term nature of the new deal increases security of Germany’s gas supplies significantly and reduces reliance on LNG imports and the spot market, which are subject to market volatility and higher prices. It is a return to supply stability. by: Charles Ellinas

Germany finally took the plunge and entered into a mega-deal with Norway to replace Russian gas that extends well into the next decade. So far, Germany has been cautious not to enter into any major gas supply deals that go beyond 2030, in line with the REPowerEU policy. But concerns about energy security and the impact on its heavy industry have made it more willing to lock-in longer-term gas supplies. German state-owned energy firm Securing Energy for Europe GmbH (SEFE) and Norway's Equinor announced on December 19 a long-term gas deal that will provide about a third of German industry gas needs. Equinor will be supplying about 10bn m3 annually to SEFE between 2024 and 2034, with deliveries commencing in January. The deal is valued at €40bn ($44bn), based on long-...