Equinor to Boost LNG Supply to 15 Million Tons by Early 2030s, Targeting Asian Demand

Norwegian energy company Equinor plans to expand its liquefied natural gas (LNG) supply portfolio to between 10 million and 15 million metric tons per year by the early 2030s, a company executive said Thursday. The strategic push aims to capitalize on rising demand from markets in both Europe and Asia.

Targeting Asian Growth

Equinor is actively pursuing new supply agreements, particularly with customers in India and Southeast Asia. According to Ingvar Egeland, Equinor's Vice President of LNG, the company expects to announce a second LNG supply deal with an Asian client this week. This follows a 15-year agreement signed in May with India's Deepak Fertilizers and Petrochemicals Corp.

Egeland noted that the company is in discussions with multiple parties, focusing on national energy companies and fertilizer producers. The move comes as Asian buyers increasingly seek to diversify their supply chains amid concerns over potential disruptions to major shipping routes, such as the Strait of Hormuz, which handles about a fifth of the world's LNG trade.

Diversifying Supply and Pricing

To reach its target, Equinor is building a globally diversified portfolio. The company loaded its first U.S. LNG cargo in August from Cheniere Energy's Sabine Pass export terminal and expects its U.S. supply capacity to reach 7 million tons per year by around 2030. Currently, about half of Equinor's LNG supply originates from its Hammerfest plant in Norway.

Ad

To manage price risk, the expanded portfolio will include cargoes priced against the Brent crude oil benchmark, Egeland stated. Potential new sources of supply being explored by the company include:

• The U.S. East Coast
• Western Canada
• South America
• African nations other than Tanzania

Tanzania Project Excluded

The ambitious 10-15 million ton target does not include potential output from Equinor's long-delayed project in Tanzania, which has been stalled by protracted negotiations with the government. However, a Tanzanian deputy energy minister indicated this week that the government expects to pass new legislation related to LNG investments by the end of the year, potentially paving the way for future progress.