The sales agreement is effective Jan. 1, 2024. (Source: Shutterstock)
Houston based independent oil and gas company Marathon Oil Corp. announced on Oct. 16 a five-year LNG sales agreement with Glencore Energy U.K. Ltd. effective Jan. 1, 2024.
The agreement includes a portion of Glencore’s equity natural gas from the Alba Field in Equatorial Guinea (E.G.)., Marathon said in an Oct. 16 press release. The pricing for the agreement is linked to the Dutch Title Transfer Facility (TTF) index allotting Marathon exposure to Europe’s LNG market. Marathon Oil holds a 64% working interest stake in the Alba Unit in the field, the company said.
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 to the LNG facility, in which the company holds a 56% working interest.
“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,” Lee Tillman, chairman, president and CEO at Marathon Oil, said in their release. “At recent forward curve pricing, we expect to realize an approximate year-on-year EBITDA increase of over $300 million next year across our E.G. integrated gas business, reflecting our differentiated and increasing exposure to the global LNG market.”
Recommended Reading
Riley Permian Buys Northwest Shelf E&P Silverback II for $142MM
2025-05-08 - Riley Exploration Permian Inc. is adding Northwest Shelf assets from EnCap-backed Silverback Exploration II. Riley is also cutting capex and focusing on preserving inventory amid weak oil prices.
Buyers Scramble for Their Slice of the Haynesville
2025-05-13 - A natural gas demand wave approaches, but there’s precious little left in the market to buy in the coveted Haynesville Shale.
Permian Resources Buys Apache's Northern Delaware Assets for $608MM
2025-05-07 - Permian Resources is expanding its New Mexico footprint with an acquisition of Permian Basin assets from APA Corp. for $608 million.
Ground Game Report: Prairie, Amplify Find A&D in Down Market
2025-07-02 - Amid a slowdown in headline-grabbing oil and gas M&A, Prairie Operating and Amplify Energy are staying busy with small-ball acquisitions and timely divestitures.
US Energy M&A Shifts Gassier into Appalachia, Midcon as Oil Slips
2025-05-12 - U.S. upstream M&A activity reached $2.3 billion in April, defying a sharp 12% collapse in oil prices. Natural gas-driven deals led the way, including EQT’s $1.8 billion Olympus Energy acquisition.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.