Equinor Secures Energy Future with Cheniere's Long-Term LNG Partnership

US: Equinor and Cheniere have signed a 15-year deal for the purchase of roughly 1.75 million tonnes of LNG annually, with half of the supply set to begin in 2027. This new Sales and Purchase Agreement (SPA) brings Equinor's total contracted volumes with Cheniere to roughly 3.5 million tonnes per year. The deal effectively doubles the volumes of LNG that Equinor intends to export from Cheniere's LNG terminals on the U.S. Gulf coast. The agreement was announced today, June 21, 2023.

The demand for LNG is projected to witness a substantial rise owing to its crucial role in ensuring energy security and facilitating a shift towards cleaner energy sources across various markets. Equinor, with its expanded portfolio of US LNG, is poised to reinforce its position as a leading provider of natural gas worldwide while also retaining its prominence as Europe's primary natural gas supplier.

Equinor's senior vice president for Gas & Power, Helge Haugane, expressed his satisfaction with the newly established long-term agreement with Cheniere. As the energy industry gears towards expanding intermittent renewables, Europe will require flexible energy on demand, making natural gas an essential component. Equinor also aims to solidify its position as a top-notch natural gas provider, with plans to leverage the growing demand for LNG in markets like Asia as a viable solution for addressing energy security and reducing emissions. These supply agreements with Cheniere are critical in expanding Equinor's global presence.

Equinor has entered into a Sales and Purchase Agreement (SPA) with Cheniere Marketing, wherein Equinor will procure nearly 1.75 million tonnes per annum of Liquefied Natural Gas (LNG) on a free-on-board basis for almost 15 years starting from the commencement of delivery of the total amount of LNG volumes. The deliveries are expected to commence in 2027 and reach the full 1.75 mtpa mark towards the end of the decade.

Equinor, a global energy company, is dedicated to creating long-term value in a low-carbon future. The company's mission is to transform natural resources into energy for the benefit of people and society, by offering a range of projects in oil and gas, renewables, and low-carbon solutions. Equinor has set an ambitious target to achieve net-zero emissions by 2050. It is the most significant supplier of pipeline gas to Europe and operates the only large-scale LNG plant in Europe at Hammerfest, Norway. Based in Stavanger, Norway, Equinor is the top operator on the Norwegian continental shelf and has a presence in almost 30 countries globally.