Equinor signs long-term LNG purchase agreement with Cheniere
Equinor and Cheniere have announced a new 15-year purchase agreement of around 1,75 million tonnes of LNG per year, with half of the volume starting from 2027. This agreement brings the total volumes that Equinor has contracted with Cheniere up to around 3.5 million tonnes per year, according to the company's release.
This new Sales and Purchase Agreement (SPA) with Cheniere will double the volumes of LNG that Equinor will export out of Cheniere’s LNG terminals on the U.S. Gulf coast.
The LNG market is expected to grow significantly because of the role it will play in providing energy security as well enabling a transition to a cleaner energy mix in many markets. With more US LNG in its portfolio, Equinor will increase its role as a supplier of natural gas in global markets while maintaining its position as the major supplier of natural gas to Europe.
Under the SPA, Equinor has agreed to purchase approximately 1.75 million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing on a free-on-board basis for a term of approximately 15 years from the commencement of delivery of the total amount of LNG volumes. The deliveries under the SPA will start in 2027 and is expected to reach the full 1.75 mtpa towards the end of this decade.
Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery.
Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with total production capacity of approximately 45 mtpa of LNG in operation. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain.
Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.
