Chesapeake pens US LNG supply deal with Vitol

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

Under the 15-year deal, Chesapeake Energy Marketing will supply up to 1 million tonnes of LNG per year to Vitol with the purchase price indexed to Japan Korea Marker (JKM).

Following the execution of the deal, Chesapeake and Vitol will jointly select the “most optimal liquefaction facility in the US” to liquefy the gas produced by Chesapeake for delivery to Vitol, according to a statement by Cheseapeake.

The agreement has a targeted start date in 2028.

Nick Dell’Osso, Chesapeake president and CEO, said today’s announcement “marks another important step on our path to ‘Be LNG Ready’, and is further recognition of the premium rock, returns, and runway of our advantaged portfolio and the strength of our financial position.”

“We look forward to entering into additional agreements as export capacity continues to come online,” he said.

In March, Chesapeake signed a similar deal with Geneva-based trader Gunvor.

Under this deal, Chesapeake will supply up to 2 million tonnes of LNG per year to Gunvor with the purchase price indexed to JKM for a period of 15 years.

After that, the two firms signed a non-binding deal with Texas-based Energy Transfer related to long-term LNG offtake from the latter’s proposed Lake Charles LNG export facility in Louisiana.

In addition to these deals, Chesapeake entered last year into a term gas supply agreement with the Golden Pass LNG terminal, owned by QatarEnergy and ExxonMobil.

On the other hand, Vitol’s LNG volumes rose last year as the company’s portfolio responded to increased demand from Europe.

In June, Vitol signed a three-year deal to offtake volumes from Indonesia’s Bontang LNG facility in East Kalimantan, while its 10-year deal with US firm Tellurian, the developer of the Driftwood LNG terminal, was terminated last year.

- Advertisements -

Most Popular

Sempra, Bechtel ink EPC deal for Port Arthur LNG expansion project

US LNG exporter Sempra Infrastructure, a unit of Sempra, and compatriot engineering and construction firm Bechtel have finalized a...

Tellurian expects to take FID on two Driftwood LNG plants in 2024

US LNG firm Tellurian said on Monday it expects to take a final investment decision in 2024 to build...

German LNG terminal operator gets no bids in latest capacity auctions

State-owned LNG terminal operator Deutsche Energy Terminal will launch new capacity auctions for its FSRU-based facilities in Brunsbüttel and...

More News Like This

Vitol orders LNG bunkering duo in China

Geneva-based energy trader Vitol has ordered two liquefied natural gas (LNG) bunkering vessels from China’s CIMC Sinopacific Offshore &...

Avenir, Vitol seal charter deal for large LNG bunkering newbuild

UK-based small-scale player Avenir LNG has chartered one large LNG bunkering vessel to Geneva-based trader Vitol. This is the first...

Vitol’s unit ViGo launches three LNG stations in Germany

Vitol’s subsidiary ViGo Bioenergy has added three new liquefied natural gas (LNG) stations for vehicles to its network in...

Vitol extends LNG supply deal with South Korea’s Komipo

Energy trader Vitol has extended its existing liquefied natural gas (LNG) supply deal with Korea Midland Power (Komipo). The original...