Equinor To Supply Orsted With Gas Through Baltic Pipe

Danish power company Ørsted and Norwegian oil and gas major Equinor have just signed an agreement under which Equinor will supply Norwegian gas to Denmark via Baltic Pipe.

The agreement covers the period from January 1, 2023, to April 1, 2024, and the total volumes of gas supplied during the period will be approximately 8 TWh, corresponding to roughly a quarter of the expected total Danish gas consumption.

The completion of the Baltic Pipe gas pipeline has enabled Ørsted to buy gas from the Norwegian gas fields, as the gas pipeline connects the Norwegian gas pipe system to Denmark.

"We're pleased to have entered into this agreement with Equinor, which ensures a stable supply of Norwegian gas to Denmark via Baltic Pipe during the period when the Tyra field isn’t supplying gas to Denmark.”

“With this agreement, we’ll have more than enough gas to meet the gas demand of our customers for the coming and next winter, enabling us to stock up our Danish gas storage facilities over the summer," Søren Thygesen Blad, Head of Gas Portfolio Management in Ørsted, said.

With this agreement and the production from the South Arne field and from biogas, Ørsted has more than covered the consumption of its own customers, which are business customers in Denmark and Sweden.

The agreement strengthens the security of supply in Denmark while also replacing the gas volumes that Ørsted would otherwise need to buy on a volatile European gas market in the period when the Tyra field is not supplying gas to Denmark.

To contact the author, email bojan.lepic@rigzone.com