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June 10, 2022

Equinor signs deal to buy LNG from Cheniere Energy

Equinor will buy 1.75Mtpa of LNG from Cheniere Marketing on a free-on-board basis for 15 years.

Norway’s Equinor has signed a long-term sales and purchase agreement (SPA) to buy liquefied natural gas (LNG) from Cheniere Energy.

As agreed, Equinor will buy 1.75 million tonnes per annum (Mtpa) of LNG from Cheniere’s subsidiary Cheniere Marketing for 15 years. The purchase will be made on a free-on-board basis.

The deliveries are scheduled to start in the second half of 2026 and will reach the full volume in the second half of 2027.

Approximately half of the volume (0.9Mtpa) will depend on Cheniere deciding to build additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage III Project.

With LNG demand expected to grow in the future, the procurement will add new volumes to Equinor’s portfolio of pipeline gas and LNG.

Equinor Gas & Power senior vice-president Helge Haugane said: “I am very pleased that we have entered into a long-term agreement with Cheniere, the US’ largest producer of LNG.

“Based on our production in Norway, Equinor is the second largest supplier of pipeline gas to Europe. The new LNG agreement is a major building block in Equinor’s ambition to further strengthen our global gas position by adding more LNG to the portfolio.

“LNG will play a crucial role in providing energy security. By increasing our position in this segment, we will be even better positioned as a long-term reliable supplier of energy.”

Equinor announced a new discovery in Skavl Stø, near the Johan Castberg field in the Barents Sea.

The site is expected to contain approximately five to ten million barrels of recoverable oil equivalent.

The Norwegian firm also recently extended a contract with offshore drilling contractor Transocean.

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