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NuVista produces condensate-rich natural gas in the Montney formation in the Alberta Deep Basin, Canada.
Under the agreement, NuVista will supply 21,000 MMbtu/d of natural gas to Trafigura with the purchase price indexed to JKM.
Trafigura and NuVista said the deal is for a period of up to thirteen years beginning January 1, 2027.
The two firms did not provide further details regarding the agreement.
Igor Marin, global head of gas, power, and renewables for Trafigura said Canada’s gas producers “are now creating an important new connection to global LNG markets.”
“The signing of our first agreement with NuVista reinforces our dedication to these markets and to the growth of our long-term portfolio,” he said.
“For over a decade of growth, we have prioritized ensuring significant diversity in our North American natural gas sales locations to maximize returns on our condensate-rich natural gas,” Jonathan Wright, CEO of NuVista said.
“We are extremely pleased to now make our first entry to the world LNG markets with this long-term agreement with Trafigura, one of the world’s leading LNG, energy, and commodities groups,” he said.
Earlier this year, Trafigura signed two LNG agreements with Canada’s largest natural gas producer Tourmaline.
Trafigura’s LNG volumes dropped 13.8 percent in the fiscal year ending September 30, 2023, while the company’s profit rose.
LNG volumes declined to 11.2 million tonnes compared to 13 million tonnes during the same period during the year before, which also declined from the previous year.