Offshore staff
HOUSTON — Marathon Oil has entered a five-year firm LNG sales agreement with Glencore Energy UK covering part of its equity natural gas from the Alba Field offshore Equatorial Guinea.
The pricing structure for the agreement is linked to the Dutch Title Transfer Facility index, minus a fixed transportation fee, giving Marathon incremental exposure to the European LNG market.
And with the prospect of arbitrage between LNG and methanol pricing, the company expects to optimize its gas operations in Equatorial Guinea next year by redirecting partial volumes of Alba Unit natural gas from the local methanol facility (Marathon 45%) to the LNG facility (Marathon 56%).
CEO Lee Tillman said, "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.
“This success positions us strongly for the next phase of opportunities to advance the E.G. Gas Mega Hub, including up to two infill development wells in the Alba Unit and the potential tie-in of the third-party [offshore] Aseng gas cap monetization."
10.17.2023
