Marathon Oil Announces LNG Sales Deal For Alba Gas In Equatorial Guinea

(RTTNews) - Marathon Oil Corp. (MRO) said that through its wholly-owned subsidiaries it has reached a five-year firm LNG sales agreement with Glencore Energy UK Ltd, a subsidiary of Glencore Plc (GLEN), for a portion of its equity natural gas produced from the Alba Field (Alba Unit, MRO 64% working interest) in Equatorial Guinea, effective January 1, 2024.

Marathon Oil noted that the pricing structure for the LNG sales agreement is linked to the Dutch Title Transfer Facility index, less a fixed transportation fee, providing Marathon Oil with significant incremental exposure to the European LNG market.

Separately, due to the expected arbitrage between LNG and methanol pricing, Marathon Oil said that it expects to optimize its Equatorial Guinea integrated gas operations in 2024 by redirecting a portion of Alba Unit natural gas from the local methanol facility (MRO 45% working interest) to the LNG facility (MRO 56% working interest).