German energy and LNG firm Uniper has signed a long-term deal with Norway’s Equinor for the supply of natural gas to Germany.
Equinor and Uniper announced the agreement in separate statements on Monday.
Under the agreement, Equinor will supply Uniper with more than 30 TWh (2.8 billion cubic meters) of natural gas per year from 2027 to 2041.
According to Equinor, pricing will reflect market terms, while other commercial details are confidential between the parties.
Germany is Equinor’s largest market for natural gas and has been an anchor market for Norwegian gas since exports started in 1977.
“The agreement strengthens the long-term supply of the German market with natural gas and contributes to the further diversification of Uniper’s portfolio, helping to further secure reliable gas supplies for Uniper’s customers in Germany,” Uniper said.
Uniper noted that “long-term and reliable supply relationships with established European producers are particularly important against the backdrop of continued volatility in global energy markets.”
“They are an important pillar of Germany’s energy security and contribute to a well-functioning and competitive European gas market,” it said.
Equinor and Uniper have also signed a non-binding letter of intent to explore possible sales from Equinor to Uniper of sustainability-related attributes linked to supplies under the new gas sales agreement.
These attributes refer to documented data on the origin of the gas and its greenhouse gas intensity and other sustainability characteristics of Equinor’s gas production.
This gas supply deal follows a recent long-term LNG sale and purchase agreement Uniper signed with Ksi Lisims LNG for volumes from the latter’s planned export project in Canada.
Under the deal, Uniper will purchase 2 million tonnes of LNG per year on a free-on-board (FOB) basis for up to 20 years, with first deliveries expected from 2032.
Ksi Lisims LNG, a joint venture of the Nisga’a Nation, Rockies LNG, and Western LNG, has yet to make a final investment decision on its project.