Equinor to flow gas to meet 25% of Danish demand via 'supply ensuring' Orsted deal
Scandinavian energy majors ink deal covering delivery of Norwegian gas to Denmark via Baltic Pipe that will translate into some 8TWh of power production
Transitioning Scandinavian energy majors Orsted and Equinor have inked a deal under which Norwegian gas will be flowed to Denmark via the Baltic Pipe trunkline.
The agreement, which runs between 1 January 2023 and 1 April 2024, covers fossil fuel deliveries that will translate into some 8TWh of power production, roughly a quarter of the expected total Danish gas demand.
“This agreement with Equinor... 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,” said Søren Thygesen Blad, Orsted's head of gas portfolio management.
“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.”
The new agreement will clear the way for production from the South Arne gas field and from Orsted's biogas output, “strengthening the security of supply in Denmark while also replacing the gas volumes that Orsted would otherwise need to buy on a volatile European gas market in the period when the Tyra field is not supplying gas to Denmark”, said Blad.
Fossil gas supply in Europe has been under unprecendented strain since embargoes were implemented agains Russia following the superpower invasion of Ukraine.