Equinor plans to grow its liquefied natural gas supply portfolio to 10-15 million metric tons a year by the early 2030s, targeting demand from Europe and Asia. The Norwegian producer expects to announce a second LNG deal with an Asian buyer this week, building on a 15-year agreement signed with India's Deepak Fertilizers and Petrochemicals Corp in May.
Equinor plans to grow its liquefied natural gas supply portfolio to between 10 million and 15 million metric tons per year in the early 2030s to address demand from Europe and Asia, senior executives said Thursday. Ingvar Egeland, Equinor's vice president for LNG, said the company expects to announce a second LNG supply agreement with an Asian customer this week.
New Asian deals build on India agreement
The company signed a 15-year LNG supply deal with India's Deepak Fertilizers and Petrochemicals Corp in May. Egeland said Equinor has held discussions with multiple parties, particularly in India and Southeast Asia, as it seeks new supply sources. The company focuses on agreements with state energy companies and fertilizer producers.
Hormuz disruption pushes Asian buyers to diversify
Asian buyers have sought alternative supplies after the U.S.-Israeli war on Iran blocked Qatar and the United Arab Emirates from exporting most of their LNG through the Strait of Hormuz, a route that previously handled a fifth of global supplies.
US cargoes and Brent-linked pricing widen the mix
Equinor loaded its first U.S. LNG cargo from Cheniere's Sabine Pass export facility in August. The company projects its supply portfolio will reach seven million tons a year in 2030 when U.S. supplies reach full capacity, and half of its current supply comes from the Hammerfest LNG plant in Norway. The planned expansion to 10-15 million tons a year will include cargoes priced on Brent to diversify price exposure, Egeland said, and this volume excludes Tanzania, where Equinor pursues a project delayed by government negotiations.
Tanzania's deputy energy minister said this week the government could pass new legislation governing LNG investments by year-end. Egeland identified potential sources of new supply as the U.S. east coast, Canada's west coast, South America, and African countries other than Tanzania.
Source: Commodities & Futures News
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