Equinor Doubles Down on LNG Expansion Amid Strait of Hormuz Disruptions

Norwegian energy major Equinor is expanding its liquefied natural gas (LNG) footprint, aiming to double its supply portfolio to 10-15 million metric tons per year by the early 2030s. This move comes as Asian buyers scramble for alternative sources due to disruptions in Middle Eastern supply chains.

Equinor's vice president for LNG, Ingvar Egeland, noted that they have been in dialogue with many counterparties, especially in India and Southeast Asia, wanting new sources. He emphasized the company's priority on securing long-term offtake from creditworthy counterparties in growing gas demand markets.

The expansion strategy positions Equinor to capture demand from regions seeking to reduce reliance on Middle Eastern supply chains disrupted by the Strait of Hormuz situation. By sourcing from U.S. Gulf Coast facilities, Canadian West Coast projects, and other Atlantic basin suppliers, the company can offer Asian buyers geographic diversification that has become increasingly valuable amid the current geopolitical climate.

Equinor anticipates its supply portfolio will double to 7 million tons per year by 2030 once U.S. volumes are fully ramped up, with half of current supply coming from its Hammerfest LNG plant in Norway. The company is set to disclose a second LNG supply agreement with an Asian customer this week.