Oil & Gas

16 Jun 2022

Norway’s Equinor Strikes LNG Purchase Deal With Cheniere

16 Jun 2022  by   

Image: Maran Gas/Equinor

Norwegian energy company Equinor has struck a long term deal with Texas-headquartered Cheniere to purchase liquefied natural gas (LNG) from 2026.

The 15-year sales and purchase agreement (SPA) will add around 1.75 million tonnes of LNG per year to Equinor’s portfolio of pipeline gas and LNG.

The company believes the LNG market is expected to grow significantly with global energy demand rising and increased focus on energy security.

It suggests US LNG can supply the European markets as well as cover demand in other markets.

Helge Haugane, Equinor’s Senior Vice President Gas & Power 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.”

Deliveries under the SPA will start in the second half of 2026.

Half of the volume is subject to Cheniere making a “positive” final investment decision to build additional liquefaction capacity at the Corpus Christi LNG Terminal beyond the seven-train Corpus Christi Stage III Project.


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