Equinor's Massive Gas Pact: Long-Term Deal With Germany's SEFE, Plus Hydrogen Partnership
Portfolio Pulse from Lekha Gupta
Equinor ASA (NYSE:EQNR) has signed a long-term gas sales agreement with Germany's SEFE worth EUR 50 billion, to supply 111 TWh of natural gas annually from 2024 to 2034, with an option to extend for another five years. Additionally, a non-binding LoI for SEFE to off-take low-carbon hydrogen from Equinor starting in 2029 was signed. Despite this, EQNR shares are trading lower by 1.04% in premarket.
December 19, 2023 | 1:42 pm
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Equinor ASA has entered into a significant long-term agreement with SEFE for natural gas and hydrogen supply, valued at EUR 50 billion. Despite the deal, EQNR shares are down 1.04% premarket.
The agreement with SEFE is a major long-term commitment that should bolster Equinor's revenue and strategic position in the European energy market. However, the short-term impact on the stock is negative, possibly due to market concerns about the costs or feasibility of the deal, or broader market conditions. The premarket dip suggests investors may be cautiously assessing the news or reacting to other external factors.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100