RWE and Equinor Strengthen Energy Partnership with New Gas Supply Agreement

By Editor


RWE and Equinor have solidified their partnership by signing a significant gas supply contract. This new agreement covers the supply of natural gas ranging from 10 to 15 terawatt hours (TWh) annually, extending until 2028. The gas will be delivered to Germany’s virtual trading hub, THE (Trading Hub Europe), under market-based terms.

Andree Stracke, CEO of RWE Supply & Trading, expressed his satisfaction with the partnership, stating, “We 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, which contributes to ensuring security of supply.”

Earlier this year, RWE and Equinor jointly revealed their commitment to developing large-scale value chains to enhance energy security and reduce emissions in response to the German-Norwegian Partnership on Climate, Renewable Energy, and Green Industry.

As part of this initiative, the partners plan to invest in and develop new gas-fired power plants in Germany that are poised to utilize hydrogen as a feedstock as soon as it becomes available on an industrial scale in the country. These plants align with the German government’s power plant strategy, which aims to establish a suitable regulatory framework for new gas-fired power plants.

A critical aspect of this value chain is the production of low-carbon hydrogen in Norway and its transport to Germany. This strategic move is expected to expedite the development of a hydrogen-based economy. Additionally, green hydrogen production will gradually take place using power generated from wind farms along the pipeline route.

The collaboration between RWE and Equinor demonstrates a shared commitment to advancing sustainable energy solutions and ensuring a secure energy supply for the future, reinforcing their role as key players in the global energy transition.

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