Equinor Targets 15 Million Tons of LNG as Qatar Exports Stay Blocked

Equinor aims to grow its global LNG portfolio to between 10 million and 15 million tons per year starting in the early 2030s, according to Reuters. The expansion targets European and Asian buyers who are facing supply shortages due to the Strait of Hormuz blockade. The Hormuz passage typically carries about one-fifth of global LNG supply, but recent conflicts have prevented Qatar and the UAE from exporting most of their LNG through the passage, forcing Asian buyers to seek alternative sources.

Equinor is currently in discussions with potential partners, particularly state energy companies and fertilizer producers in India and Southeast Asia. The company already has a 15-year supply agreement with India's Deepak Fertilizers and Petrochemicals Corp. Equinor recently shipped its first cargo from Cheniere's Sabine Pass terminal in the U.S. to Europe, as part of long-term agreements signed with Cheniere in 2022 and 2023, which will deliver around 3.5 million tons annually.

Equinor's senior vice president for gas and power, Helle Østergaard Kristiansen, considers this shipment a significant milestone in strengthening the company's position as a dependable LNG supplier. The goal of expanding to 10-15 million tons by the early 2030s will be achieved through new supplies from the U.S. East Coast, Canada's west coast, South America, and African producers, with the exception of Tanzania's delayed project.

These cargoes will be priced against Brent crude to reduce Equinor's exposure to pricing risks. Equinor is also pursuing an expansion in oil production, with a target of increasing international output by 27% to 950,000 barrels of oil equivalent per day by 2030. This growth is expected to come from new production in the Gulf of Mexico, Brazil, and Angola.