Equinor plans to increase its global LNG capacity to between 10 and 15 million tons per year by the early 2030s. This move comes in response to supply shortages in European and Asian markets due to the blockage of the Strait of Hormuz.
New Supply Agreements
The company expects to announce its second supply agreement with an Asian buyer this week. This is while the Strait of Hormuz typically carries about one-fifth of the global LNG supply, and the U.S.-Israel war with Iran has blocked exports from Qatar and the United Arab Emirates through this route.
Read more: Increase in the Value of Tanker Fleets and Cargo Ships in the Global Market
Discussions with Asian Buyers
Equinor is engaging with many counterparties, particularly in India and parts of Southeast Asia. The company is focused on state-owned energy companies and fertilizer producers. In May, Equinor signed a 15-year supply contract with Indian company Deepak Fertilizers and Petrochemicals.
Equinor also received its first LNG shipment from the Sabine Pass terminal via the Isabel vessel for delivery to Europe in August. This shipment is supplied under long-term agreements signed with Cheniere in 2022 and 2023, totaling approximately 3.5 million tons per year. Helge Haugane Kristiansen, Equinor's Senior Vice President for Gas and Energy, described this move as a milestone that strengthens the company's position as a reliable supplier.
Oil Production Goals
Equinor expects that volumes received from the United States will help double its global LNG portfolio to 7 million tons per year by 2030. Currently, the Hammerfest plant in Norway supplies half of its existing volumes. Equinor aims to increase capacity to 10 to 15 million tons by the early 2030s using new resources from the U.S. East Coast, the West Coast of Canada, South America, and African producers, excluding the delayed Tanzania project.
Equinor is also pursuing parallel development in oil production and aims to increase its international production by 27% to reach 950,000 barrels of oil equivalent per day by 2030. This increase will primarily come from new production in the Gulf of Mexico, Brazil, and Angola.
Read more: Japanese Refiners' Efforts to Buy Middle Eastern Oil · Natural Gas Prices in the West Proceed with Caution
