Oman LNG Signed 9-year Agreement With BP To Supply About 1M Metric Tonnes Per Year Of LNG As Of 2026
Portfolio Pulse from Charles Gross
Oman LNG has entered into a 9-year agreement with BP to supply approximately 1 million metric tonnes of LNG per year starting in 2026, as reported by Reuters citing the state news agency.
November 21, 2023 | 10:38 am
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NEUTRAL IMPACT
The deal between Oman LNG and BP may influence the LNG market dynamics and could have an indirect impact on the United States Natural Gas Fund (UNG) due to changes in LNG supply and demand.
While the agreement is directly between Oman LNG and BP, it may affect the overall LNG market by altering supply and demand balances. This could indirectly impact UNG, an ETF that tracks natural gas prices, although the effect is less direct and may be mitigated by other market factors.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
BP has secured a 9-year LNG supply agreement with Oman LNG, ensuring a steady supply of 1 million metric tonnes per year starting from 2026.
The agreement with Oman LNG provides BP with a long-term supply of LNG, which is positive for the company's energy portfolio and future revenue streams. This deal is likely to be viewed favorably by investors as it secures future supply in a market with growing LNG demand.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80