Equinor reached an agreement to buy 100 percent shares in Danish energy trading company Danske Commodities (DC) for €400 million, Equinor announced Friday.
The acquisition of one of Europe’s largest short-term electricity traders supports Equinor’s move away from an upstream oil and gas company towards becoming a broad energy company.
"Equinor is building a material industrial position in profitable renewable energy, and expects to invest 15-20 percent of its capital expenditure in new energy solutions by 2030. The transaction will enable both Equinor and DC to create value along the full electricity value chain and provide DC with a partner that supports their growth plans," the company stated.
Closing is subject to certain conditions, including European Commission approval.
DC was founded in 2004 and is based in Aarhus, Denmark, with 284 employees. In 2017, it traded 318 terawatt-hours of electricity across 37 countries, equal to over twice that of Norway’s annual electricity consumption. It has also traded 389-terawatt hours of gas across 18 countries, around one third of total of Norway's gas production.
"It completes more than 4,000 trades and processes around 173 terabytes of data every day, 24 hours a day, 365 days a year," the company stated.
By Gulsen Cagatay