Under the sales and purchase agreement (SPA), Equinor will purchase around 1.75 million tonnes per annum (mtpa) of LNG on a free-on-board basis.
Cheniere Energy’s subsidiary Cheniere Marketing will start delivery of half of the LNG volume associated with the SPA starting from 2027.
The remaining half of the LNG volume is subject to a positive final investment decision for the first train of the Sabine Pass liquefaction expansion project, among other considerations.
Equinor Gas and Power senior vice-president Helge Haugane said: “Europe will need natural gas to ensure flexible energy on demand to support the build-out of more intermittent renewables, and LNG will play an important role. In other markets, for example in Asia, demand for LNG is expected to grow as a solution to energy security as well as lower emissions.
“Equinor has an ambition to strengthen its role as a leading supplier of natural gas and with our supply agreements with Cheniere we are expanding our global position.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Equinor said the latest SPA brings the total contracted volumes with Cheniere to around 3.5mtpa.
The Cheniere’s Sabine Pass Liquefaction Expansion Project is planned adjacent to the existing SPL project in Cameron Parish, Louisiana.
With a total anticipated production capacity of around 20mtpa, the SPL expansion project will comprise three large-scale liquefaction trains, a boil-off gas re-liquefaction unit, two full-containment LNG storage tanks, and appurtenant connecting facilities and piping.