Norway's Equinor signs 15-year gas supply deal with Uniper

Equinor (EQNR) began its Troll Phase 3 stage 2 subsea project earlier than planned, with costs below the NOK12.3B ($1.32B) estimate. The project was initially expected to start later in the year.

The Troll Phase 3 Stage 2 subsea project in the North Sea began production on August 22, adding gas supply to the Troll A platform and Kollsnes plant. The project, operated by Equinor, is expected to produce 55 billion cubic meters of gas. The Troll partnership includes Petoro, Shell, TotalEnergies, and ConocoPhillips. The project started ahead of schedule and under budget, with Equinor citing efficient operations and drilling. Troll field supplies around 10% of Europe's gas demand.

Uniper and Equinor have signed a 15-year agreement for Equinor to supply Uniper with over 30 TWh of natural gas annually from 2027, securing Germany's gas supply and diversifying Uniper's portfolio. Both companies aim to collaborate on lower-emissions gas solutions.

Equinor's EVP Philippe Mathieu stated the company expects to increase equity production outside Norway to 950,000 boe/d by 2030, with $20bn in free cash flow between 2026 and 2030. Q2 2026 production reached 750,000 boe/d, up over 10% in two years despite asset divestments. Mathieu attributed growth to portfolio upgrades and investments, forecasting an 80% rise in cash flow from production by 2030.

Equinor and Uniper agreed to a 15-year gas supply deal starting in 2027, delivering 30 TWh/year to Germany. Pricing will follow market terms, with sustainability attributes also explored.

Equinor is considering developing a $42bn LNG plant in Tanzania, with partners including Shell and ExxonMobil. The Lindi facility could produce 10 mtpa. Fiscal terms and contracts are still under negotiation. The project is motivated by geopolitical instability in the Middle East.