Chesapeake seals LNG deal with Delfin and Gunvor

US shale gas producer Chesapeake Energy has entered into an offtake deal with Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, to supply LNG to Geneva-based trader Gunvor.

Chesapeake said in a statement on Tuesday that the LNG export deal includes executed sales and purchase agreements for long-term liquefaction offtake.

Under the SPA, Chesapeake will buy about 0.5 million tonnes per annum (mtpa) of LNG from Delfin at a Henry Hub price with a targeted start date in 2028.

The firm will then deliver LNG to Gunvor on an free on board (FOB) basis with the sales price linked to the Japan Korea Marker (JKM) for a period of 20 years, it said.

These volumes will represent 0.5 mtpa of the previously announced up to 2 mtpa heads of agreement with Gunvor, Delfin said.

Also, these volumes will add to the SPA Gunvor signed with Delfin in November last year for up to 1 mtpa.

Delfin plans to install up to four self-propelled FLNG vessels that could produce up to 13.3 mtpa of LNG or 1.7 billion cubic feet per day of natural gas as part of its Delfin LNG project.

The firm also aims to install two FLNG units under the Avocet LNG project.

Delfin said in November it had secured commercial agreements for LNG sales and liquefaction services and the firm was “in the final phase towards FID on its first three FLNG vessels”.

Kalpesh Patel, co-head of LNG trading and a member of Gunvor’s executive committee, said the new deal “represents an important step in finalizing the 0.5 mtpa out of our total of 2 mtpa arrangement with Chesapeake, while expanding our existing cooperation with Delfin.”

“We continue to provide reliable and competitive logistics services to our partners by utilizing our fleet consisting of vessels procured via term charters and equity ownership,” he said.

He added that Gunvor “looks forward to establishing additional agreements with the companies in the near future.”

Nick Dell’Osso, Chesapeake president and CEO, said this deal “cements an important step on our path to ‘Be LNG Ready’ and is further recognition of the depth of our portfolio and strength of our financial position.”

Most Popular

Egypt plans to charter FSRU from Germany

Egypt plans to sub-charter the 174,000-cbm FSRU Energos Power, which previously worked at the Mukran LNG terminal, from the German government.

Cheniere gets FERC OK for two more Corpus Christi LNG trains

US LNG exporting giant Cheniere has received approval from the US FERC to build two more midscale trains at its Corpus Christi LNG plant in Texas.

EIA boosts Henry Hub price forecast

The US Energy Information Administration expects the Henry Hub spot price to average $4.20/MMBtu in 2025 due to lower natural gas inventories and higher LNG exports, according to its latest short-term energy outlook.

More News Like This

Delfin secures DOE extension

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana. has secured a permit extension from the US Department of Energy, granting additional time to start exports from the FLNG project.

Centrica seals LNG supply deal with Petrobras

UK-based energy firm Centrica has signed a 15-year LNG supply deal with Brazil’s state-owned energy firm Petrobras.

Gunvor’s unit takes Pertamina’s PGN to arbitration over LNG supply dispute

Gunvor Singapore initiated the arbitration processes on September 13, according to PGN. The case was filed with the London Court...

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...