Norway’s Equinor receives first US LNG cargo from Cheniere

Equinor has received its firs LNG cargo from the US Gulf Coast with a delivery made from Cheniere Energy’s Sabine Pass facility, the Norwegian energy firm announced on September 2.

The shipment from Cheniere’s facility in Louisiana commences the beginning of a 15-year deal between Equinor and the US’s largest LNG developer, which was signed in 2022.

Under the terms of the agreement, Cheniere will provide around 1.75mn tonnes per year (tpy) of the super-chilled fuel on a free-on-board (FOB) basis. The US LNG giant will ramp up deliveries to reach the full 1.75mn tpy by the second half of 2027.

Meanwhile, a similar 15-year sales and purchase agreement (SPA) was also inked between the two companies in 2023. Deliveries from that deal are expected to commence in 2027 with shipments ramped up by 2030 but are subject to a final investment decision (FID) on the first train of Sabine Pass’ planned expansion.

An engineering, procurement and construction (EPC) contract with contractor Bechtel for the first phase of the expansion has been signed, however FID is not expected to be taken until early 2027.

"Today's milestone further strengthens Equinor's position as a reliable supplier of energy to customers around the world," Helle Østergaard Kristiansen, Equinor’s senior vice president for gas and power said in a statement.

"The United States will play an increasingly important role in our global LNG portfolio, complementing the strength of our existing gas position and providing additional flexibility to serve customers in Europe and Asia," Kristiansen added.

The two deals enable the Norwegian company to double its global LNG portfolio by 2030 as Norway seeks to strengthen its energy security as Europe turns its back on Russian fossil fuels with a ban on Russian LNG to come into force in January and pipeline gas commencing November 2027.