Equinor has started delivering natural gas to Prague’s gas and electricity company Pražská plynárenská under a 10-year long-term agreement for supplies into the Czech Republic, the Norwegian energy major said on Friday.
The gas deliveries, which started in October, will last until 2035. Information on volumes, terms and conditions are confidential, Equinor said.
Pražská plynárenská will use the gas to supply households and businesses in the capital city of Prague and other parts of the country with heat, electricity, and natural gas.
Equinor’s supplies of pipeline gas to Europe are backed by the resources on the Norwegian continental shelf, Europe’s biggest oil and gas producing province, the Norwegian major said.
The deal with the Czech Republic “joins a string of long-term gas contracts we have signed across Europe in recent years, demonstrating the role gas plays for European energy security”, Equinor’s CEO Anders Opedal said in a statement.
Equinor’s main gas markets have been in Northwest Europe and the UK, but the company has expanded its reach over the past decade to include supplies to the Baltic countries and Poland. Equinor also sees a growing market potential among customers in Central and Southern Europe, it said today.
Equinor expects to boost its oil and gas production by more than 10% by 2027, by developing profitable projects and pursuing infrastructure-led exploration in the Norwegian Continental Shelf. The company, as well as other operators offshore Norway, will continue exploring and developing oil and gas projects to meet Europe’s energy needs.
Norway has been boosting its gas production since 2022 when it overtook Russia as Europe’s top gas supplier. Not a member of the EU, but a NATO founding member and key EU and UK ally, Norway looks to continue providing the gas Europe needs.
Companies operating offshore Norway are raising production of gas and oil, with the support of the Norwegian government, which continues to bet on the oil and gas industry and the massive revenues it raises for the country and its $2.1-trillion sovereign wealth fund, the world’s largest.
By Tsvetana Paraskova for Oilprice.com
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