LNG trader Vitol has signed a long-term deal to buy natural gas from US oil and gas producer EOG.
Under the sales and purchase deal, EOG will supply 180,000 MMBtu/d of natural gas, or about 1.25 million tonnes of LNG per year, to Vitol for a period of 10 years staring in 2027.
Geneva-based Vitol said EOG will supply 140,000 MMBtu/d at a purchase price indexed to Brent Crude Oil and the remaining volumes indexed to Brent or a US Gulf Coast gas index.
“Vitol has a long history of serving LNG customers world-wide and this transaction underscores Vitol’s ability to provide innovative gas and LNG solutions to North American gas producers looking to access global markets,” Ben Marshall, head of Vitol Americas, said.
He said that Vitol continues to strengthen its position in the LNG industry as global LNG demand is experiencing “significant growth”.
Prior to this deal, US shale gas producer Chesapeake Energy has signed a heads of agreement with Vitol to supply the latter with LNG from a liquefaction plant in the US.
Under the 15-year deal, Chesapeake Energy Marketing will supply up to 1 mtpa of LNG to Vitol with the purchase price indexed to Japan Korea Marker (JKM).
Vitol has a global LNG portfolio with long-term LNG supply from North America, Africa, Middle East, and Asia, and charters a fleet of LNG carriers.
In 2022, Vitol physically delivered about 14 mtpa of LNG.
The firm recently signed a deal with India’s GAIL to deliver 1 mtpa of LNG to the latter for a period of about 10 years starting in 2026.