New offtake agreements strengthen US LNG commercial prospects

Equinor’s offtake agreement with Cheniere’s Sabine Pass liquefied natural gas expansion project marks the second major agreement between a European major and a developing US LNG project, marking progress for US projects that have faced struggles this year in taking their final investment decisions.

The new offtake agreement will improve commercial support for the Sabine Pass expansion as it works toward FID, as an offtake agreement between TotalEnergies and NextDecade will similarly support the Rio Grande LNG project as it targets project sanction by end-June.