The German group Sefe has concluded a 50 billion euro agreement to receive gas from the Norwegian company Equinor, the companies announced on Tuesday, reports Reuters.

The amount of gas covers one third of the gas needs of the largest European economy. Sefe is the former division of the Russian Gazprom group, nationalized last year by the German Government. Sefe and Uniper ensure Germany’s gas supply.

The deal is a step forward for Berlin’s efforts to replace Russian gas following Moscow’s invasion of Ukraine. It also strengthens Norway’s position as Germany’s main natural gas supplier, currently the Scandinavian state is responsible for 40%-50% of German gas imports, according to Agerpres.

Under the agreement, Equinor will deliver approximately 10 billion cubic meters (bcm) of natural gas annually from January 1, 2024 to 2034, with an option to extend the contract for another five years, the companies announced on Tuesday.

At current prices, the value of the contract is approximately 50 billion euros, Equinor said.

Norway is currently Europe’s largest supplier of gas, overtaking Russia, whose supplies have been significantly reduced following the invasion of Ukraine and problems with the Nord Stream pipeline.