Norwegian energy group Equinor is planning to expand its liquefied natural gas trading business and is currently engaged in discussions with several potential buyers in Europe and Southeast Asia, as revealed by a senior official speaking to Reuters.
The oil and gas producer reported higher than expected first-quarter profits, attributing the positive results to high production levels in its native Norway, strong operational performance, and robust outcomes from LNG trading.
LNG is increasingly recognised as a crucial component of the transition towards achieving net-zero emissions by 2050 and is anticipated to remain in demand for decades, particularly in Asia, the primary energy-importing and consuming region expected to drive global demand until mid-century.
“Asia is very relevant for us as some of these growing economies are going to be big energy consumers in the future and they will have their form of transition,” remarked Helge Haugane, Equinor’s senior vice president of gas and power, during the Flame Gas and LNG conference in Amsterdam.
The surge in imports of LNG has significantly replaced a considerable portion of Russian pipeline gas supplies to Europe, with the region surpassing China in 2023 to become the world’s largest importer of LNG.
“Up to 2050 and beyond, Europe will still need gas,” Haugane emphasised.
In 2022, Equinor surpassed Russia’s Gazprom to become Europe’s largest natural gas supplier, a shift precipitated by the upheaval in energy ties following the invasion of Ukraine.
Haugane disclosed that Equinor traded 6 million metric tonnes of LNG in 2023, underscoring the company’s focus on value over volume. While not specifying a particular volume target, Equinor believes in the growth potential of the LNG market and remains open to seizing opportunities within it.
Haugane anticipates increased price volatility in the future, a trend that he believes will create favourable trading prospects for Equinor.
For more information visit www.equinor.com
