Equinor Agrees to Buy 1.75 Million MT/Year of LNG from Cheniere for 15 years — OPIS

Equinor and Cheniere have signed a new 15-year purchase agreement of around 1.75 million metric tons/year of liquefied natural gas (LNG), with half of the volume starting from 2027, according to a news release Wednesday.

This agreement effectively doubles the volumes of LNG that Equinor will export out of Cheniere's LNG terminals on the U.S. Gulf coast, bringing the total to around 3.5 million mt/year, Equinor said in its news release.

Under the deal, Equinor will buy the LNG from Cheniere Marketing on a free-on-board basis for approximately 15 years starting from delivery of the total LNG volumes. Starting in 2027, deliveries are set to reach the full 1.75 million mt/year by the end of this decade, said Equinor.

The value of the agreement was undisclosed in the news release.

Equinor is the largest exporter of pipeline gas to Europe and operator of Europe's only large-scale LNG plant at Hammerfest, Norway.

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 million mt/year of LNG in operation.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Rob Sheridan, rsheridan@opisnet.com; Editing by Yazdi Merchant, ymerchant@opisnet.com

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June 21, 2023 11:58 ET (15:58 GMT)

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