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 production facility at the Colle Santo onshore gas field in Italy.

London-based Reabold Resources, which owns a 26.1 percent equity interest in LNEnergy, said in a statement the heads of agreement provides the terms on which Gunvor will purchase LNG from the facility.

According to Reabold, Gunvor will buy about 44,000 tonnes of LNG per year for an “indefinite period with a minimum term of five years”.

The point of sale will be the truck loading flange at the small-scale LNG plant, and LNG will then be delivered by truck in Italy.

Also, the price for the LNG supplies will be aligned with the Italian PSV price.

In addition, the agreement also provides for a potential prepayment by Gunvor for a portion of the first five years of deliveries, with such amounts subject to prepayment being a total of about 66,000 tonnes of LNG, or 999,000 MWh, Reabold said.

The average forward Italian PSV gas price for the years 2025-2030 is currently at about €30 / MWh.

Reabold said the prepayment is conditional on agreeing definitive transaction documentation and LNEnergy obtaining the required permits to construct and operate the LNG production facility.

On the basis of the HoA, LNEnergy and Gunvor intend to negotiate a fully-termed LNG sale and purchase agreement over the next six months.

During such time, LNEnergy will exclusively discuss the sale and purchase of LNG from Colle Santo with Gunvor, it said.

Gunvor’s LNG business

Gunvor has been trading LNG since 2010, and has grown to become one of the largest independent LNG traders in the world.

The firm recently resolved a dispute with state-owned Pakistan LNG over issues related to contracted LNG supplies, and it also signed a heads of agreement to buy LNG from Glenfarne Group’s Texas LNG, the developer of the planned 4 mtpa LNG export terminal in the port of Brownsville.

Gunvor also recently joined forces with Chesapeake and Delfin LNG for the supply of about 0.5 mtpa from Delfin LNG’s planned floating LNG export project in the Gulf of Mexico.

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

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