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Cheniere signs LNG supply agreement with Equinor

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Cyann Fielding

Journalist at Tank Storage Magazine.
LNG ship approaches shoreline

Cheniere Energy has confirmed a long-term agreement with Norway’s Equinor to supply 1.75 million tonnes per annum (MTPA) of LNG, for expansion of the Sabine Pass in the Gulf of Mexico.

The supply agreement is for 15 years, starting from the first delivery of total contract volume.

The contract will help build commercial momentum for the proposed Sabine Pass LNG expansion, which will add 20 MTPA of capacity when completed. It is the second contract for the expansion, after a deal with Korea Southern Power (KOSPO).

Half of Equinor’s contract deliveries would begin in 2027 and the rest by the end of this decade, after a final investment decision for the Sabine Pass project is made.

‘Equinor has an ambition to strengthen its role as a leading supplier of natural gas and, with our supply agreements with Cheniere, we are expanding our global position,’ says Helge Haugane, Equinor’s senior vice president for gas and power.

In May, KOSPO agreed to purchase approximately 0.4 MTPA of LNG on a delivered ex-ship (DES) basis from 2027 through 2046, with smaller quantities starting to be deliver in 2024.

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