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Free AccessEquinor Sees More Interest in Longer Term Contracts From Europe
European countries are looking to lock in longer-term contracts for Norwegian natural gas supplies as the country has replaced Russia as the main supplier to Europe.
- Equinor has seen “unprecedented interest” in longer term contracts from Germany and countries in central and eastern Europe with focus on security of supply in the wake of the energy crisis according to senior vice president for gas and power marketing Helge Haugane.
- Customers used to call three-year contracts long term but are seeking to replicate the 10-year deal Equinor signed with Poland last year.
- “We have several discussions for contracts that are up to 10 years, something we have not seen in a decade for new contracts,” said Haugane. “Several of these discussions will probably be completed this year.”
- Buyers have previously been reluctant to commit to long term deals due to the conflict with European climate targets. Haugane said Europe is realising that gas needs to be there for longer. “We need gas for decades to back up renewables.”
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.