Equinor signs SPA with Cheniere

This new Sales and Purchase Agreement (SPA) will add new volumes to Equinor’s already significant gas portfolio of pipeline gas and LNG.

With global energy demand growing and increased focus on energy security, the LNG market is expected to grow significantly. US LNG can supply the European markets, as well as cover demand in other markets.

“I am very pleased that we have entered into a long-term agreement with Cheniere, the US’ largest producer of LNG. Based on our production in Norway, Equinor is the second largest supplier of pipeline gas to Europe. The new LNG agreement is a major building block in Equinor’s ambition to further strengthen our global gas position by adding more LNG to the portfolio. LNG will play a crucial role in providing 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 Senior Vice President Gas and Power.

Under the SPA, Equinor has agreed to purchase approximately 1.75 million tpy of LNG from Cheniere Marketing on a FOB basis for a term of approximately 15 years.

The deliveries under the SPA will start 2H26, and reach the full 1.75 million tpy in 2H27. Half of the volume, or approximately 0.9 million tpy, is subject to Cheniere making a positive Final Investment Decision (FID) to construct addition liquefaction capacity at the Corpus Christi LNG terminal beyond the seven-train Corpus Christi Stage III Project.

Read the article online at: https://www.lngindustry.com/liquefaction/13062022/equinor-signs-spa-with-cheniere/