Norwegian energy giant Equinor is doubling the amount of liquefied natural gas it exports from Cheniere’s LNG terminals on the US Gulf Coast.
The two companies on Wednesday announced a new 15-year purchase agreement for around 1.75 million tonnes of LNG per year, with half the volume to start from 2027. This agreement brings the total volume Equinor has contracted with Cheniere to approximately 3.5 million tonnes per year.
Equinor anticipates significant growth in the LNG market, with US LNG playing a role in ensuring energy security and enabling the transition to cleaner energy. Equinor aims to expand its role as a supplier of natural gas to world markets while maintaining its position as Europe’s largest supplier.
“Europe will need natural gas to ensure flexible energy on demand and to support the expansion of intermittent renewables, and LNG will play an important role.” In other markets, such as Asia, demand for LNG is expected to grow as a solution for Energy security and lower emissions will increase,” said Helge Haugane, senior vice president of gas & power at Equinor. “Equinor has ambitions to strengthen its role as a leading natural gas supplier and our supply agreements with Cheniere are expanding our global position.”
As part of the SPA, Equinor has agreed to purchase approximately 1.75 million tonnes of LNG per year from Cheniere Marketing free of charge on board for a period of approximately 15 years beginning in 2027 and ending in the decade.