LNG

Denmark and Sweden, whose electricity systems have been interconnected for more than 100 years, have signed a natural gas supply agreement to be implemented in case of emergencies with the Danes pledging to supply Swedish essential services with gas.

The Nordic nations have entered into a “solidarity agreement “ on gas supplies signed by the Director General of the Swedish Energy Agency, Robert Andrén, and the Director of the Energy Agency of Denmark, Kristoffer Böttzauw.

“The agreement will come into force if an emergency situation arises, where the energy crisis escalates and gas shortages occur in the coming winters,” said a statement.

“In that case, Denmark will contribute to securing the supply of the protected customers in Sweden. This applies, for example, to households, hospitals, emergency services and other critical functions,” according to the agreement.

Small-scale LNG

While Sweden is a small-scale LNG importer of around 400,000 tonnes per annum for bunkering fuel and other uses, Denmark has the key pipeline links to North Sea natural gas supplies.

Andrén, the Sweden’s Energy Agency head, explained that their energy systems were complex and connected to several countries.

“The agreement shows the strength of international cooperation, especially for security of supply, where the benefits of cooperation are obvious,” added Andrén.

The backbone of the regional gas infrastructure is the Danish transmission system, which transport natural gas from the North Sea to distribution networks on land.

Danish state-owned firm Energinet operates the transmission system in Denmark and the system is also the route to Germany and Sweden and to the two Danish gas storage facilities, which are consolidated in a separate company owned by Energinet.

“The agreement we have signed reflects the great work and cooperation that has taken place in the wake of Russia's invasion of Ukraine - not just in the Nordic region, but throughout the European union,” said Kristoffer Böttzauw, director of the Danish Energy Agency.

Team work

“No country in the EU or the Nordics can solve the energy supply crisis alone. So we must cooperate and be in solidarity with our neighbours - both when it comes to supply chains and energy savings,” added Böttzauw.

The Danish and Swedish sides noted that Russia's invasion of Ukraine has strained gas supplies across Europe causing large fluctuations in energy prices.

“Although electricity and gas prices have fallen since the summer of 2022 and the European gas storages have a very high degree of filling, there is still a lot of work to be done to ensure security of supply,” they said.

“The solidarity agreement shows the effect of the strong Nordic cooperation to ensure security of supply, where both countries benefit from close cooperation in both the electricity and gas fields,” they added. 

Nordic natural gas company Gasum of Finland, the region’s biggest distributor of LNG, aims to change its strategy in the next five years to concentrate operations on biogas made from waste and the electricity business.