Norwegian oil and gas company Vår Energi has extended its natural gas sales agreement with Germany's VNG Handel & Vertrieb, a subsidiary of VNG, for an additional 12 years.    

According to the agreement, Vår Energi will supply up to 5bcm of gas to Germany between 2024 and 2036. 

The gas volumes will be delivered to the terminals in Emden and Dornum, Germany, and priced according to market terms. 

This contract extension strengthens the partnership between the two entities, which has existed since the early 1990s. 

Vår Energi CEO Nick Walker said: “The agreement demonstrates Europe's trust in Norway as an important energy provider. As Norway’s second-largest exporter of natural gas, Vår Energi will continue to explore for further petroleum resources across the Norwegian Continental Shelf.” 

VNG CEO Ulf Heitmüller said: “Norway has been a stable and reliable energy supplier to VNG for many years with an impressive low-carbon footprint and close to zero methane emissions. This renewed agreement for natural gas deliveries confirms our joint commitment to a secure and sustainable energy supply in Europe.”  

Recently, Vår Energi completed an intra-group merger with its fully owned subsidiary, Vår Energi Norge, formerly known as Neptune Energy Norge.  

Last month, Vår Energi agreed to divest its 20% interest in the Bøyla field to Concedo for $24m (Nkr253.79m) in a bid to optimise its asset portfolio.  

Earlier, the company entered into a transaction with DNO Norge involving the sale of stakes in five oil and gas fields in the Norne area of the Norwegian Sea.  

This included a 10.5% interest in the developing Verdande field. In exchange, DNO Norge will transfer its 22.6% interest in the non-core Ringhorne East field to Vår Energi.