Marathon Oil signs deal with Glencore for Alba gas in Equatorial Guinea

(Reuters) - Marathon Oil said it has entered into a five-year LNG sales agreement with a unit of Glencore for a portion of its natural gas produced from the Alba Field in Equatorial Guinea, boosting its presence in the European LNG market.

The Houston-based firm, which has a 64% working interest in the Alba Unit, said the sales deal is effective Jan. 1, 2024.

The company's shares were up about 1% in after market trade.

The oil and gas exploration firm said the pricing structure for the deal is linked to the Dutch Title Transfer Facility (TTF) index, ending the legacy Henry Hub linked contract.

"We expect to realize an approximate year-on-year EBITDA increase of over $300 million next year across our E.G. integrated gas business," said Marathon CEO Lee Tillman.

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