Orsted Inks Deal to Receive Norwegian Gas Through Next Winter

Orsted AS clinched a deal to receive natural gas from Norway’s Equinor ASA this winter and next, easing the strain on the Danish energy market after Russia’s cuts. Author of the article: Bloomberg News Elena Mazneva High voltage electricity pillars near the Jnschwalde lignite-fired power stationNear Peitz, Brandenburg, Germany28.10.2021.Photo: Krisztian Bocsi Photo by Krisztian Bocsi…
Orsted Inks Deal to Receive Norwegian Gas Through Next Winter

Orsted AS clinched a deal to receive natural gas from Norway’s Equinor ASA this winter and next, easing the strain on the Danish energy market after Russia’s cuts.

Author of the article:

Bloomberg News

Elena Mazneva

High voltage electricity pillars near the Jnschwalde lignite-fired power stationNear Peitz, Brandenburg, Germany28.10.2021.Photo: Krisztian Bocsi Photo by Krisztian Bocsi /Bloomberg

(Bloomberg) — Orsted AS clinched a deal to receive natural gas from Norway’s Equinor ASA this winter and next, easing the strain on the Danish energy market after Russia’s cuts. 

While Denmark is not in an acute energy crisis, with wind accounting for almost half of electricity generation, the loss of Russian gas this summer over payment disputes, and delays to Danish biggest field Tyra, put pressure on the Nordic nation. Last month, the government decided to lower energy use at public buildings and encouraged Danes to cut consumption of gas and electricity to avoid potential shortages.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

The deal with Equinor, totaling about 8 terawatt-hours of gas from January through April 2024 supplied via the new Baltic Pipe, equates to about quarter of expected total Danish gas consumption, Orsted said in a statement Thursday. 

Combined with Denmark’s own production in the North Sea and from biogas that would be “more than enough” to cover total gas needs through winter 2024 with the Tyra field not yet back, it said.

“The agreement strengthens 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,” the company said.

Denmark used to be a net exporter of gas in the past but maintenance work has idled its key contributer, Tyra, until the winter of 2023-24. The country currently gets about a quarter of all its supply from biogas.

Orsted still formally has a contract with Gazprom PJSC for 20 terawatt-hours of gas per year until 2030. But the Russian exporter halted supplies on June 1, after the Danish company refused to meet the Kremlin’s demands to pay in rubles. Orsted also ceased all sourcing of biomass and coal from Russia for its power stations following Moscow’s invasion of Ukraine. 

—With assistance from Christian Wienberg.

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
U.S. economy slowing, but recession not inevitable, Yellen says
Read More

U.S. economy slowing, but recession not inevitable, Yellen says

Author of the article: WASHINGTON — U.S. Treasury Secretary Janet Yellen said on Sunday that U.S. economic growth is slowing and she acknowledged the risk of a recession, but she said a downturn was not inevitable. Yellen, speaking on NBC’s “Meet the Press,” said strong hiring numbers and consumer spending showed the U.S. economy is…
Central banks flying into storm clouds
Read More

Central banks flying into storm clouds

Author of the article: A look at the day ahead in markets from Sujata Rao After a hectic period, traders (and reporters) will be looking forward to the long Easter weekend but they must first get through what promises to be an eventful Thursday. Already in Asia, the normally staid Bank of Korea delivered a…
BHP to boost nickel exploration spending amid EV boom
Read More

BHP to boost nickel exploration spending amid EV boom

Author of the article: KALGOORLIE — BHP Group will increase its spending on nickel exploration over the next two years to meet growing demand for the raw material used in making electric vehicle batteries, the chief of its nickel operations said on Wednesday. BHP, through its Nickel West unit, has supply agreements for the metal…
Russia accuses U.S. of direct Ukraine war role in missile attacks
Read More

Russia accuses U.S. of direct Ukraine war role in missile attacks

Author of the article: Reuters Can Sezer and Orhan Coskun ISTANBUL/LONDON — Russia has accused the United States of direct involvement in the Ukraine war, while the first ship carrying Ukrainian grain to world markets since Moscow’s invasion is due to be inspected in Turkey on Wednesday. Russia’s defense ministry, headed by an ally of…