Ørsted's deal with Equinor doesn't ensure cheap gas

Although the Danish power group has secured gas deliveries from Norway through Baltic Pipe, the price may end up a steep one still.
Photo: Cezary Aszkielowicz / Agencja Wy/Agencja Wyborcza.pl via REUTERS / X02731
Photo: Cezary Aszkielowicz / Agencja Wy/Agencja Wyborcza.pl via REUTERS / X02731
by VIKTOR BRANDT KÆRGAARD, translated by jonas sahl hollænder

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.

Ørsted lands agreement with Equinor on Danish gas

Baltic Pipe’s receiving terminal in western Denmark delayed

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