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Expand Energy, formed by the October 2024 merger of Chesapeake and Southwestern Energy, revealed this in its first-quarter results report.
On April 22, the company executed the SPA for long-term liquefaction offtake with Delfin FLNG 1, subject to final investment decision.
Under the SPA, Expand Energy will purchase approximately 1.15 million tonnes of LNG per annum from Delfin FLNG 1 at a Henry Hub price with a contract targeted start date in 2031, it said.
In February 2024, Chesapeake entered into an offtake deal with Delfin Midstream to supply LNG to Geneva-based trader Gunvor.
Under this SPA, Chesapeake planned to buy about 0.5 mtpa of LNG from Delfin at a Henry Hub price with a targeted start date in 2028.
The firm then planned to deliver LNG to Gunvor on a free-on-board (FOB) basis, with the sales price linked to the Japan Korea Marker (JKM) for a period of 20 years.
This means that Expand Energy more than doubled the yearly volumes under the new SPA.
Expand Energy sees LNG as “natural extension” of its business
Expand Energy’s interim chief executive Michael Wichterich said during the quarterly earnings call on Wendesday that the company’s Gulf Coast assets “sit at the epicenter of LNG.”
“In fact, our largest customers today are LNG facilities, and there is an increasing recognition of the strength and competitive advantage of our Haynesville position,” he said
“According to third-party reports, today we own 72 percent of the lowest break-even inventory in the basin, allowing us to deliver certified natural gas directly to LNG facilities with minimal risk of basis floods. Fundamentally, we see LNG as a natural extension of our business,” Wichterich said.
Discussing the Delfin LNG SPA, he said that the company sees “great value in this transaction as it’s bigger, reaches market sooner and cheaper compared to our previous agreement, which has been terminated.”
“Our LNG strategy will be dynamic and shaped by the economic merits of each agreement, partnership, or joint venture. We will take a portfolio approach, continuing to add to our LNG opportunities over the next several years with different types of contracts,” he said.
Wichterich said that Expand Energy wants exposure to the international prices, “whether it be JKM or TTF or others.”
“Delfin is the start, and we’ll call it our foundational sort of contract in order to start to capture the LNG market, you know, opportunity and the premium pricing. It kind of flows into our bigger marketing plan,” he said.
Dan Turco, Expand Energy’s executive VP, marketing and commercial, said that “we’re trying to integrate this through our value chain, we have a long-term partnership with Delfin.”
“We’re negotiating with them right now to be their gas supply manager,” he said.
“We’re integrating it right through our value chain. That differentiates us and brings more value to us, and we think brings more value to the customers. We’re able to offer different solutions,” Turco said.
FID on first FLNG
In January 2026, Delfin Midstream said that it expects to make a final investment decision on its first FLNG unit in February this year.
The LNG developer agreed to an extension of the letter of award with South Korean shipbuilder Samsung Heavy Industries previously announced in October 2025.
The LOA formally notified SHI that it had been selected and awarded as the exclusive EPCI contractor for the first FLNG of the Delfin LNG project, while Delfin is entitled to the exclusive rights to SHI’s dock for construction of the first FLNG.
Concurrent with this extension, Delfin has entered into an LoA with Black & Veatch for the execution of a purchase order with Siemens Energy.
This follows an agreement in July 2025 between Delfin and Siemens Energy to reserve manufacturing capacity for the SGT-750 gas turbine mechanical drive packages.
Delfin’s brownfield deepwater port requires minimal additional infrastructure investment to support up to three floating LNG vessels producing up to 13.2 million tonnes of LNG annually.
In November 2025, Delfin secured an additional extension from the US Department of Energy to begin LNG exports.
DOE amended Delfin’s non-FTA export authorization to allow it to start commercial non-FTA exports of LNG by June 1, 2031.
As per supply deals, UAE-based International Resources Holding (IRH) signed a 20-year heads of agreement last year with Delfin and energy trader Vitol to buy 1 million tonnes per annum from Delfin’s planned floating LNG project in the US.
Under the agreement, Delfin Midstream’s Delfin LNG will supply LNG on a free-on-board (FOB) basis to Vitol, which will act as the offtaker and deliver the volumes to IRH Global Trading (IRHGT), IRH’s global trading arm.
In 2022, Delfin Midstream signed a long-term deal to supply 0.5 million tonnes per annum of LNG on a free on-board (FOB) basis for a 15-year period to a unit of energy trader Vitol.
In addition to the SPA, Vitol completed a strategic investment in the company.