BERLIN/FRANKFURT, Dec 19 (Reuters) - German energy firm Sefe secured a blockbuster 50-billion-euro ($55 billion) gas deal with Norway's Equinor (EQNR.OL) on Tuesday, covering a third of the industrial gas needs of Europe's largest economy.

The deal marks a milestone in Berlin's efforts to replace former long-term supplier Russia, which first cut and later suspended deliveries via the Nord Stream pipeline in 2022, stoking fears of cold German homes during the last winter season.

"This is a response to Europe's need for long-term, reliable supply of energy and a viable route to decarbonisation at scale," Equinor CEO Anders Opedal said.

The supply deal covers around 10 billion cubic metres (bcm) of natural gas per year from Jan. 1 2024 until 2034 and carries an option for another five years covering 29 bcm, the two companies said in a joint statement.

At current market prices, this translates into a contract volume of around 50 billion euros, Equinor said.

The agreement also covers a non-binding letter of intent that would make Sefe, formerly known as Gazprom Germania, an offtaker of low-carbon hydrogen from Equinor starting in 2029 and continuing towards 2060, the firms said.

Sefe - short for Securing Energy for Europe - was nationalised by Berlin during the continent's energy crisis and, along with Uniper , has been put in charge of securing the country's gas supply.

"The procurement of natural gas from the Norwegian continental shelf ensures the sustainable and future-proof supply for European and, in particular, German customers in the household and industrial sectors," Sefe CEO Egbert Laege said.

($1 = 0.9143 euros)

https://www.reuters.com/business/energy/norways-equinor-germanys-sefe-strike-55-billion-gas-supply-deal-2023-12-19/