bp, OMV sign 10-year LNG supply deal

World Oil Staff July 28, 2023

(WO) – bp and OMV signed a long-term sale and purchase agreement (SPA) covering supply of up to 1 million tonnes of liquefied natural gas (LNG) per year for 10 years from 2026. 

Under the terms of the agreement, bp will provide OMV with LNG from its diverse and global portfolio, which will be received and re-gasified through the Gate LNG Terminal in Rotterdam, the Netherlands, where OMV holds regasification capacity, or other terminals in Europe.

Alfred Stern, Chairman of the Executive Board and CEO of OMV AG, said, “It is one of OMV’s key priorities to drive forward our ongoing diversification of supply sources that encompasses gas from our own production and external sources from Norway, as well as additional LNG volumes. In tandem with the recent news regarding our additional gas transport capacities until 2028, our agreement with bp reflects our significant contribution to the security of supply to our customers in Austria and Europe. Our partnership with bp, spanning a 10-year period from 2026 is an important strategic step towards diversifying and safeguarding our supply sources in the long-term.”  

Jonty Shepard, VP Global LNG Trading & Origination at bp, said “At bp, we see LNG as an essential part of the energy transition and essential for our own pivot to becoming an integrated energy company.  We are pleased to conclude this LNG sale and purchase agreement with OMV, with whom we have a longstanding relationship.  Europe is a significant LNG market and this agreement with OMV further demonstrates our LNG supply capability in the region, supporting security of supply for our European customers.”

The announcement came on the same day that OMV unveiled the largest natural gas discovery in Austria in the last 40 years.

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