German energy company Uniper has signed a two-year contract with Vermilion’s local subsidiary to procure all its natural gas production from German operations.
The agreement covers both low and high-calorific natural gas, with Uniper set to distribute the locally produced supply to its customers across Germany.
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Uniper, one of Germany’s major energy utilities, aims to strengthen the diversification of its gas portfolio through this contract.
The company said that the current gas supply contract with Vermilion will support the reliability of the domestic energy supply.
Uniper chief commercial officer Carsten Poppinga said: “Extending this collaboration sends a clear signal of security and stability for the German energy market.
“In times of geopolitical uncertainty and the ongoing transformation of the energy system, it is crucial to rely on competitively priced supplies of locally produced natural gas and further strengthen the diversification of our portfolio.
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By GlobalData“This agreement underscores our role as a reliable partner for industry, municipalities and households across Germany.
“It demonstrates how we take responsibility for a secure, sustainable and affordable energy supply. Our cooperation with Vermilion is an important building block in this strategy.”
Based in Calgary, Canada, Vermilion has been operating in the German market since 2014 and has expanded its presence through acquisitions and partnerships.
The company is said to hold the largest exploration acreage in Lower Saxony and is focused on producing domestically sourced natural gas with a lower carbon intensity.
This year, Vermilion expects to produce approximately 2.4 billion kilowatt-hours of natural gas in Germany.
This is estimated to meet the annual gas needs of around 220,000 households.
Vermilion Energy Germany business unit managing director Jefferey Lawrance Davies said: “We are proud to contribute to Germany’s energy supply with responsibly produced domestic resources.
“As long as natural gas remains part of the energy mix, local production should be the preferred option.
“Supplying German-produced gas to Uniper not only helps reduce CO₂ emissions compared with natural gas imports but also strengthens the resilience of the German energy system during the transition period.
“Our operations meet extremely robust safety and environmental standards, deliver a significantly lower carbon footprint than imported natural gas, and create regional value through continuous economic and social investment and our Community Investment Programme.”
In July this year, Uniper signed an eight-year gas supply agreement with Canadian gas producer Tourmaline, which is expected to commence in November 2028.
Tourmaline will provide Uniper with 80 billion British thermal units of natural gas per day, totalling 234 billion cubic feet during the agreement.
