OMV, BP forge ahead with a 10-year long-term LNG supply agreement
British oil and gas giant BP and Austrian energy company OMV have signed a long-term sale and purchase agreement (SPA) for the supply of up to 1 million tonnes of liquefied natural gas (LNG) annually over a 10-year period, beginning in 2026.
Under this agreement, BP will supply OMV with LNG from its extensive and global portfolio. The LNG will be received and re-gasified through the Gate LNG terminal in Rotterdam, the Netherlands, where OMV maintains regasification capacity. The agreement also allows for the use of other terminals in Europe.
Alfred Stern, chairman of the executive board and CEO of OMV AG, commented, “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. 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.”
BP and OMV secure decade-long LNG sale and purchase agreement starting from 2026. Photo courtesy of BP p.l.c.
Echoing these sentiments, Jonty Shepard, VP of global LNG trading & origination at BP, stated, “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. 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.”