Cheniere Inks 15-Year LNG Supply Deal with Equinor
Cheniere Energy Inc. has agreed to sell liquefied natural gas (LNG) to Equinor as the Norwegian energy company plans to boost its LNG volumes for Europe amid a tight commodity market and surging demand for the super-cooled fuel.
"LNG will play a crucial role in energy security. By increasing our position in this segment, we will be even better positioned as a long-term, reliable supplier of energy," said Helge Haugane, Equinor's head of gas and power trading.
Under the deal, Cheniere will deliver 1.75 million tonnes of LNG per year for 15 years starting from the second half of 2026, it said in a statement on Thursday.
Half of the annual volume that Cheniere plans to deliver, approximately 0.9 MTPA, depends on the Texas-based company making a positive final investment decision to expand liquefaction capacity at the Corpus Christi LNG Terminal.
“The SPA reflects the urgency in demand for investment in additional LNG capacity, not only for the Corpus Christi Stage III Project, which is nearing FID, but also for capacity beyond the project’s initial seven trains,” Jack Fusco, Cheniere’s president and CEO, said.
U.S. LNG companies have been exporting record volumes to the European Union following sanctions on Russia over Moscow's invasion of Ukraine that reduced supplies in an already tight market.
The United States is on track to become the world's largest LNG exporter this year, surpassing Australia and Qatar, as producers aim to boost liquefaction capacity.
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