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Equinor, an oil and gas company, has signed a long-term gas supply deal with Austrian energy company OMV.

Starting on 1 October 2023, the five-year agreement will see Norway’s Equinor supply 12 terawatt-hours of gas annually.

Equinor said it will deliver the gas at Trading Hub Europe in Germany.

The latest agreement builds on the earlier supply deals between the companies.

The deal is priced at market terms.

Equinor senior vice-president of Gas & Power Helge Haugane said: “Equinor prides itself on being a long-term, reliable supplier of natural gas to Europe.

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“We have been observing an increasing demand for bilateral contracts from customers who see Norwegian gas as an enabler of energy security as well as of the energy transition.”

According to a Reuters report, Norway has surpassed Russia to become the region’s top gas provider, as Russian gas exports to Europe have decreased in the wake of the conflict in Ukraine and damage to the Nord Stream pipelines.

For OMV, the deal forms part of its gas diversification strategy.

OMV also stated it is currently buying natural gas from its own production sources in Austria and Norway.

Additionally, it has agreements in place for long-term liquefied natural gas regasification facilities at Rotterdam’s GATE terminal.

OMV claims to have access to all significant central and north-west European natural gas trading and capacity marketplaces and participates as a possible buyer in the EU Joint Gas Purchasing Platform auctions.

Furthermore, OMV still has long-term supply agreements, which will last until 2040, with Russia’s Gazprom.

Citing government data, the news agency said that Austria, a landlocked country, receives nearly 66% of its natural gas imports from Russia through pipelines into eastern Europe but is currently exploring new routes.

Meanwhile, Equinor has awarded TechnipFMC a contract for engineering, procurement, construction and installation of subsea production systems for its Rosebank project on the UK Continental Shelf.

Under the contract, TechnipFMC will be responsible for the manufacturing and installation of subsea production systems, flexible and rigid pipe, and umbilicals, as well as connection to the host facility.

Techip FMC classified this contract as ‘large’, which is defined as carrying a value between $500m and $1bn.

Located around 130km north-west of Shetland, the Rosebank field is estimated to have total recoverable resources of around 300 million barrels of oil.

Rosebank is due to be developed with subsea wells tied back to a redeployed floating production storage and offloading vessel.