OSLO, June 18 (Reuters) - Vaar Energi has extended by 12 years a long-term pact to supply natural gas to Germany's VNG, the Norwegian company said on Tuesday.

Norway became Europe's biggest gas supplier in 2022, overtaking Russia after Moscow's invasion of Ukraine, to meet roughly a quarter of the continent's demand.

"The agreement with VNG is a strong response to our European customers' need to ensure long-term energy supply," Vaar's Chief Executive Nick Walker said in a statement.

The deal provides for Vaar to deliver up to 5 billion cubic metres of gas over the period from 2024 to 2036 to terminals in Emden and Dornum in Germany, priced at market terms, the company added.

Oslo-listed Vaar is majority owned by Italy's Eni. (Reporting by Terje Solsvik; Editing by Jacqueline Wong and Clarence Fernandez)