Equinor Aims for LNG Supply Expansion Amid Asian Demand Surge
Equinor, a Norwegian energy producer, is expanding its liquefied natural gas (LNG) supply portfolio to meet growing demand from European and Asian markets. By the early 2030s, the company plans to increase its LNG supply to between 10 million and 15 million metric tons per year.
According to Ingvar Egeland, Equinor's vice president for LNG, the expansion will include cargoes priced on the futures market to diversify price exposure. This move comes as a response to changing market dynamics, particularly in Asia where buyers are seeking alternative sources due to disruptions in traditional supply routes.
Equinor has already signed a 15-year LNG supply contract with India's GAIL and is set to announce a second agreement with an Asian customer this week. The company expects its supply portfolio to reach 7 million tons per year by 2030, with half of the supply coming from its Hammerfest LNG plant in Norway.
The U.S.-Israeli war on Iran has led to a blockage of Qatar and the United Arab Emirates' LNG exports through the Strait of Hormuz, pushing Asian buyers to find new sources. Equinor's expansion plans aim to capitalize on this shift in demand.