Chesapeake inks US LNG supply deal with Gunvor

US shale gas producer Chesapeake Energy has signed a heads of agreement with Geneva-based trader Gunvor to supply the latter with liquefied natural gas from a liquefaction plant in the US.

Under the deal, Chesapeake will supply up to 2 million tonnes of LNG per year to Gunvor with the purchase price indexed to Japan Korea Marker (JKM) for a period of 15 years, according to a statement by Gunvor.

Also, Chesapeake and Gunvor will jointly select the “most optimal liquefaction facility” in the US to liquefy the gas produced by Chesapeake and deliver LNG to Gunvor on a free-on-board basis with a targeted start date in 2027, the statement said.

“This agreement reflects the powerful combination of the premium rock, returns, and runway of our competitively positioned Haynesville natural gas assets combined with the strength of our balance sheet and financial position to securely supply global LNG markets,” Nick Dell’Osso, Chesapeake president and CEO, said in the statement.

He added that this marks an “important initial step on our path to being LNG ready and we look forward to entering into additional agreements while export capacity continues to come online.”

Last year, Chesapeake entered into a deal to deliver natural gas to the Golden Pass LNG terminal.

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.

On the other hand, trader Gunvor signed a long-term deal last year to buy LNG from Energy Transfer, the developer of the proposed Lake Charles LNG export facility in Louisiana.

Gunvor also signed a deal with US LNG firm Tellurian for Driftwood LNG volumes, and this deal had a deadline until the end of February. Tellurian did not provide further updates.

In addition, Gunvor renewed a $1.565 billion loan facility in January to support its growing LNG business.

“We are excited to establish this partnership with Chesapeake which will further enhance our global LNG portfolio,” Kalpesh Patel, co-head of LNG trading and a member of the executive committee of Gunvor, said in the statement.

“Our trading expertise together with our robust shipping fleet will not only contribute to the competitive shipping costs but also ensure reliable offtake operations for Chesapeake and the liquefaction facility which we will jointly select,” he said.

- Advertisements -

Most Popular

Japan’s Chiyoda provides Golden Pass LNG update

Japan's engineer Chiyoda has released an update regarding the construction of the Golden Pass LNG export project in Texas,...

Singapore LNG bunkering volumes hit new record

Singapore’s liquefied natural gas (LNG) bunkering sales reached a new record in May, according to Singapore’s Maritime and Port...

Perenco takes stake in Golar LNG

London-based oil and gas firm Perenco has purchased a stake in floating LNG player Golar LNG. According to a SEC...

More News Like This

Gunvor in Italian small-scale LNG move

Geneva-based energy trader Gunvor has signed a non-binding deal to buy liquefied natural gas from LNEnergy's planned small-scale LNG...

New LNG carrier joins Celsius fleet

South Korea’s Samsung Heavy Industries has hosted a naming ceremony for one 180,000-cbm LNG carrier it built for Denmark’s...

Gunvor, Pakistan settle LNG supply dispute

Geneva-based energy trader Gunvor has resolved a dispute with state-owned Pakistan LNG over issues related to contracted LNG supplies. "Gunvor...

Glenfarne’s Texas LNG inks long-term supply deal with Gunvor

Glenfarne Group’s Texas LNG, the developer of the planned 4 mtpa LNG export terminal in the port of Brownsville,...