Equinor to Expand LNG Supply Portfolio to 10-15 Million Tons by Early 2030s

Norwegian state-owned energy company Equinor ASA (EQNR) 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. The move is designed to capitalize on increasing demand from markets in both Europe and Asia, an company executive stated on Thursday.

Strategic Growth and New Deals

Ingvar Egeland, Equinor's vice president for LNG, announced that the company expects to sign a second major LNG supply agreement with an Asian customer this week. This follows a 15-year deal secured in May with India’s Deepak Fertilizers and Petrochemicals Corp.

Egeland noted that Equinor is in active discussions with multiple potential clients, particularly in India and Southeast Asia. The company is reportedly focusing on forging supply partnerships with national energy companies and fertilizer producers in the region.

Diversifying Supply Sources

To support this expansion, Equinor is diversifying its sources of LNG. The company anticipates its supply from the United States will reach 7 million tons per year by around 2030 as new production capacity comes online. In August, Equinor loaded its first American LNG cargo from Cheniere Energy's Sabine Pass export terminal.

Currently, about half of Equinor's LNG supply originates from its Hammerfest plant in Norway. Future potential sources for the expanded portfolio include:

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• The U.S. East Coast
• Western Canada
• South America
• Various African nations, excluding the delayed Tanzania project for now

To manage price volatility, Egeland confirmed the company will include cargoes priced against the Brent crude oil benchmark in its expanded portfolio.

Market Context

The push for new supply agreements comes as Asian buyers actively seek to diversify their energy sources. According to the report, this trend has been accelerated by geopolitical tensions impacting the Strait of Hormuz, a critical transit route that handles approximately one-fifth of the world's LNG shipments.

Meanwhile, Equinor's planned expansion target does not include potential output from its project in Tanzania, which has faced delays in negotiations with the local government. However, a Tanzanian deputy energy minister indicated this week that new legislation related to LNG investment could be passed by the end of the year.