Equinor plans LNG expansion in early 2030s to meet European and Asian demand

By Florence Tan

BANGKOK, Sept 16 (Reuters) - Equinor EQNR.OL aims to expand its liquefied natural gas supply portfolio to between 10 million and 15 million metric tons per year (tpy) early in the next decade to meet demand from Europe and Asia, senior executives said on Thursday.

The Norwegian producer is expected to announce a second deal to supply LNG to an Asian customer this week, Ingvar Egeland, Equinor's vice president for LNG, told Reuters.

Equinor committed to a 15-year LNG supply deal with India's Deepak Fertilizers and Petrochemicals Corp in May.

"We have been in dialogue with many counterparties, especially in India and also places in Southeast Asia, wanting to have new sources," Egeland said, adding that Equinor focuses on supply deals to state energy companies and fertiliser producers.

The U.S.-Israeli war on Iran has prevented Qatar and the United Arab Emirates from exporting most of their LNG via the Strait of Hormuz, where a fifth of global supplies used to pass, forcing Asian buyers to seek other supplies.

Equinor lifted its first U.S. LNG cargo from Cheniere's Sabine Pass export facility in August and expects its supply portfolio to double to 7 million tpy in 2030 when the U.S. supplies are fully ramped up. Half of the supply comes from its Hammerfest LNG plant in Norway.

Equinor plans to expand supplies to 10 million to 15 million tpy by the early 2030s, including cargoes priced on Brent to diversify its price exposure, Egeland said.

The volume excludes Tanzania, he added, where Equinor is pursuing a project that has been delayed by negotiations with the government.

Tanzania's deputy energy minister said this week that the government could pass a new law governing LNG investments by the end of the year.

Egeland said potential sources of new supply include the east coast of the U.S., the west coast of Canada, South America, and African countries besides Tanzania.