Equinor, a Norwegian oil and gas company, has entered into a five-year gas supply agreement with Austria's OMV. Starting from October 1, 2023, Equinor will supply 12 terawatt-hours of gas annually to OMV. The gas will be delivered at Trading Hub Europe in Germany and is priced at market terms. This agreement further strengthens the partnership between the two companies and supports OMV's gas diversification strategy.
Helge Haugane, Equinor's Senior Vice President of Gas & Power, noted the increasing demand for bilateral gas contracts, with customers recognizing Norwegian gas as an enabler of energy security and the energy transition. Norway has become Europe's leading gas supplier, surpassing Russia, whose exports to Europe have decreased due to the Ukraine conflict and Nord Stream pipeline damage.
OMV is currently sourcing natural gas from its production sources in Austria and Norway and has long-term liquefied natural gas regasification agreements in place at Rotterdam's GATE terminal. Austria, a landlocked country, is exploring new gas supply routes, as it currently receives a significant portion of its natural gas imports from Russia through pipelines into eastern Europe.
In addition to its agreement with Equinor, OMV maintains long-term supply contracts with Russia's Gazprom, which will run until 2040. This deal reflects OMV's commitment to diversifying its gas supply sources.
The collaboration between Equinor and OMV is expected to contribute to Europe's energy security and the transition to more sustainable energy sources.