Marathon Oil Inks 5-Year LNG Deal for Alba Gas in Equatorial Guinea
(P&GJ) — Marathon Oil Corp. has entered into a five-year firm LNG sales agreement with Glencore Energy U.K. Ltd. for a portion of its equity natural gas produced from the Alba Field (Alba Unit, MRO 64% working interest) in Equatorial Guinea (E.G.), effective Jan. 1, 2024.
The pricing structure for the LNG sales agreement is linked to the Dutch Title Transfer Facility (TTF) index, less a fixed transportation fee, providing Marathon Oil with significant incremental exposure to the European LNG market.
Separately, due to the expected arbitrage between LNG and methanol pricing, Marathon Oil announced it expects to optimize its E.G. integrated gas operations in 2024 by redirecting a portion of Alba Unit natural gas from the local methanol facility (MRO 45% working interest) to the LNG facility (MRO 56% working interest).
"I'm excited to announce this new sales agreement linked to the European LNG market, signaling the conclusion of the legacy Henry Hub linked contract," said chairman, president, and CEO Lee Tillman. "The timing of this new sales agreement, EG LNG's track record of reliable operations, and the plant's proximity to Europe resulted in tremendous demand and an extremely competitive process."
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