Norwegian Equinor and US-based natural gas company Cheniere signed a new 15-year purchase agreement for the supply of around 1.75 million tonnes of LNG per annum (mtpa), half of which will start in 2027, the companies disclosed in a joint statement on Wednesday.
Bringing the total volumes that Equinor has contracted with Cheniere up to around 3.5 mtpa, the agreement will also double the volumes of LNG that Equinor will export out of Cheniere’s LNG terminals on the US Gulf Coast.
Equinor said it will increase its role as a natural gas supplier to global markets with more US LNG in its portfolio while maintaining its position as a major supplier to Europe.
According to Helge Haugane, Equinor’s senior vice president for Gas & Power, LNG will play a critical role in supplying on-demand natural gas to Europe to facilitate the deployment of increasingly intermittent renewables.
He also revealed the company’s intention to strengthen its position as a top provider in order to fulfill expanding LNG demand in Asian markets as a solution to energy security and lower emissions.
