Key facts
- Equinor aims to expand its global LNG portfolio to 10-15 million tons annually by the early 2030s.
- The company expects to announce a second Asian supply agreement this week.
- The Strait of Hormuz blockade has impacted Qatar and UAE LNG exports.
- Equinor is in dialogue with counterparties in India and Southeast Asia.
- Equinor signed a 15-year deal with India's Deepak Fertilizers and Petrochemicals Corp in May.
- Equinor's U.S. volumes are expected to help double its global LNG portfolio to 7 million tons annually by 2030.
Equinor is aiming to significantly boost its global liquefied natural gas (LNG) operations, targeting an annual portfolio of 10 million to 15 million tons by the early 2030s. This expansion is driven by demand from European and Asian buyers facing supply shortages due to the ongoing blockade in the Strait of Hormuz, which normally handles about a fifth of global LNG supply. The conflict involving the U.S. and Iran has restricted exports from Qatar and the UAE, pushing Asian buyers to seek alternative sources.
Equinor's LNG vice president, Ingvar Egeland, indicated that the company is in discussions with counterparties, particularly in India and Southeast Asia, focusing on state energy companies and fertilizer producers. This follows a 15-year supply agreement signed in May with India's Deepak Fertilizers and Petrochemicals Corp.
In August, Equinor received its first U.S. cargo from Cheniere's Sabine Pass terminal, destined for Europe under long-term agreements. This move is expected to help double Equinor's global LNG portfolio to 7 million tons annually by 2030. The company's existing volumes are primarily supplied by its Hammerfest plant in Norway.
Future growth to the 10-15 million ton target will incorporate new supplies from the U.S. East Coast, Canada's west coast, South America, and African producers, excluding Tanzania's delayed project. Equinor also plans to diversify its pricing exposure by including cargoes priced against Brent crude.
In parallel, Equinor is increasing its oil production, with a target of a 27% rise in international output to 950,000 barrels of oil equivalent per day by 2030, primarily from new projects in the Gulf of Mexico, Brazil, and Angola.