Equinor targets 10-15 million tons of LNG supply by early 2030s
Equinor plans to grow its liquefied natural gas supply portfolio to between 10 million and 15 million metric tons per year in the early 2030s to address demand from Europe and Asia, senior executives said Thursday. The Norwegian producer expects to announce a second LNG supply agreement with an Asian customer this week, according to ...
Equinor, the Norwegian energy company, aims to expand its liquefied natural gas (LNG) supply portfolio by a significant margin by the early 2030s, according to recent statements from senior executives. The company intends to supply between 10 million and 15 million metric tons of LNG annually during this period, with a focus on meeting the growing demands from Europe and Asia.
This ambitious expansion plan comes in the wake of a 15-year LNG supply agreement signed by Equinor with India’s Deepak Fertilizers and Petrochemicals Corp in May. Ingvar Egeland, Equinor’s vice president for LNG, revealed that the company has been actively pursuing new supply sources, particularly in India and Southeast Asia. These discussions have been focused on signing supply agreements with state energy companies and fertilizer producers.
The shift in Asian buyers' demand for alternative supplies is notable, as the U.S.-Israeli war on Iran disrupted Qatar and the United Arab Emirates' LNG exports through the Strait of Hormuz. This chokepoint previously handled a fifth of the global LNG supply. Equinor made its first U.S. LNG cargo delivery from Cheniere’s Sabine Pass export facility in August.
Equinor's supply portfolio is currently projected to reach 7 million tons per year by 2030, when U.S. supplies will be at full capacity. Currently, half of their supply originates from the Hammerfest LNG plant in Norway. The planned expansion of their supply will involve cargoes priced on Brent, allowing for better price diversification. This volume does not include Tanzania, where Equinor is pursuing a project that has been delayed due to government negotiations.
Egeland identified potential sources of new supply as the U.S. east coast, Canada’s west coast, South America, and African countries other than Tanzania. The company's strategic vision aims to secure a more robust and diversified LNG supply, which will be crucial for meeting the evolving energy demands of Europe and Asia in the coming years.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
