This 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 THE (Trading Hub Europe).
H. Haugane, Equinor’s senior vice president Gas & Power said:
- Germany and Norway have been energy partners ever since Norwegian gas exports first started more than 45 years ago;
- I am very pleased that we continue to develop this partnership and that we can announce another bilateral agreement between Equinor and RWE, which is one of many companies that see Norwegian gas as an enabler for energy security as well as of the energy transition.
- we are delighted to have signed a long-term gas supply agreement with our partner Equinor;
- for us as a global energy trader gas plays an important role in the energy transition;
- the newly concluded gas supply agreement adds a further important building block to our Pan-European natural gas portfolio contributing to security of supply.
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.
Gradually, green hydrogen will also be produced using power from wind farms
along the pipeline route.