Chesapeake inks gas supply deal with Golden Pass LNG

US shale gas producer Chesapeake Energy will supply natural gas to the Golden Pass LNG terminal under a new deal revealed this week.

Chesapeake said on Tuesday it has entered into a term gas supply agreement (GSA) with Golden Pass LNG Terminal to deliver 300 mmcf per day of “responsibly sourced, independently certified gas” from the Haynesville.

The firm expects the contract to begin in 2024 with a 36 month term at a Nymex-based price less a fixed differential.

QatarEnergy and ExxonMobil are building the $10 billion Golden Pass LNG export terminal on the Gulf Coast near Sabine Pass, Texas, and plan to launch the facility in 2024.

State-owned LNG giant QatarEnergy owns a 70 percent stake in the project while US energy firm ExxonMobil has a 30 percent share.

Once complete, the giant facility, located next to the existing LNG import terminal in Sabine Pass, will have three trains and a total liquefaction capacity of about 18 mtpa.

Workforce to rise to 7,700

Last week, the US FERC gave an approval to Golden Pass LNG to increase the project’s workforce from 2,900 to 7,700 personnel.

According to a filling dated July 29, FERC also authorized peak shift construction traffic of 1,200 heavy vehicles, 1,500 passenger vehicles, and 200 buses.

In addition, Golden Pass LNG can now expand the set of activities that can be performed 24/7, with 80 percent of this construction to be conducted during daytime hours.

These include steel erection, pipe fitting, electrical work, welding, and hydro and pneumatic testing, surface prep, coating, and similar kinds of preparation, as well as concrete batching.

The construction period for the authorizations requested would extend through December 31, 2025, the filling said.

Most Popular

Venture Global’s Plaquemines LNG terminal achieves first production

Venture Global announced on Friday it had reached first LNG production at the company’s second facility, Plaquemines LNG, in...

Swan Energy, Nebula’s AG&P LNG plan Indian JV

Swan Energy said on Friday it had signed a heads of agreement with AG&P Terminals &Logistics (Singapore). The two firms...

Spot LNG rates remain weak

“Spark30S rates rose for a fourth consecutive week, increasing marginally by $750 to $23,500 per day,” Qasim Afghan, Spark’s commercial...

More News Like This

Chevron-led JV secures GHG permit near Barrow Island

US energy giant Chevron and its partners Shell and ExxonMobil have been awarded the greenhouse gas (GHG) assessment permit...

ExxonMobil’s LNG sales to grow beyond 40 mtpa by 2030

ExxonMobil just announced its corporate plan to 2030 saying it expects to deliver incremental growth potential of $20 billion...

QatarEnergy completes massive LNG shipbuilding program

QatarEnergy said on Wednesday it has selected the joint venture of MOL (MOL) and Cosco Shipping LNG Investment (Shanghai)...

Cosco Shipping, MOL team up on six QC-Max LNG carriers

Shanghai Cosco Shipping LNG Investment, a unit of CSET, will take a 50 percent stake in each of the...