Equinor plans to expand its liquefied natural gas supply portfolio to between 10 million and 15 million tonnes a year by the early 2030s, senior executives said, to meet growing demand from Europe and Asia.
Ingvar Egeland, Equinor's vice president for LNG, told Reuters the company expects to announce a second deal to supply LNG to an Asian customer this week. Equinor signed a 15-year LNG supply deal with India's Deepak Fertilizers and Petrochemicals Corp in May. Egeland said Equinor has been in dialogue with many counterparties, especially in India and other parts of Southeast Asia, that are "wanting to have new sources." He said Equinor is focused on supply deals with state energy companies and fertilizer producers.
Middle East disruption, Asian demand
The push toward Asian buyers follows supply disruptions in the Middle East. The U.S.-Israeli war on Iran has kept Qatar and the United Arab Emirates from exporting most of their LNG through the Strait of Hormuz, where a fifth of global supplies used to pass, pushing Asian buyers to seek other supplies.
Equinor lifted its first U.S. LNG cargo from Cheniere Energy's Sabine Pass export facility in August. The company expects its overall supply portfolio to double to 7 million tonnes a year in 2030, once those U.S. volumes are fully ramped up. Half of Equinor's current supply comes from its Hammerfest LNG plant in Norway.
New sources, Brent pricing, Tanzania excluded
The 10 million to 15 million tonne target excludes Equinor's LNG project in Tanzania, which has been delayed by negotiations with the government. Tanzania's deputy energy minister said this week the government could pass a new law governing LNG investments by the end of the year.
Egeland said the expansion will draw on new supply from the U.S. East Coast, the west coast of Canada, South America and African countries other than Tanzania. He said the target includes cargoes priced on Brent, to diversify Equinor's price exposure.
