Ørsted's deal with Equinor doesn't ensure cheap gas
Last week, Ørsted and Equinor struck a deal for the Norwegian oil and gas firm to supply gas through the new Baltic Pipe connection from Norway to Denmark corresponding to a fourth of the latter country’s consumption.
However, the agreement, which will take effect on Jan. 1, 2023, to April 1, 2024, doesn’t entail a stable price, reports Danish newspaper Berlingske.
Head of Ørsted’s gas portfolio Søren Thygesen Blads comments to the newspaper that the deal will ensure increased security for the Danish market and its gas customers, reducing the risk of having to turn off the gas for customers this winter or the next.
But the gas price level itself will match that on European exchanges.
”It’s difficult to make predictions on price developments, but Danish gas prices will still be affected by European developments,” he writes to the newspaper.
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