Page 10 - GLNG Week 10 2023
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GLNG AMERICAS GLNG
Chesapeake signs 15-year LNG
supply deal with Gunvor
US OKLAHOMA-HEADQUARTERED shale gas Dell’Osso added that the agreement serves as
producer Chesapeake Energy Corp announced an “important initial step on our path to being
The pair aim to launch on March 6 that it has reached a 15-year LNG LNG ready and we look forward to entering into
the facility in 2027. supply agreement with Swiss commodity trader additional agreements while export capacity
Gunvor Group. Under the terms of the deal, continues to come online.”
Chesapeake will supply up to 2mn tonnes per The deal comes following the expiration on
year (tpy) of LNG to Gunvor. The purchase February 28 of a deadline for Gunvor’s agree-
price will be indexed to the Japan Korea Marker ment to purchase 3mn tpy of LNG for 10 years
(JKM), the benchmark gas price in Asia. from US developer Tellurian’s proposed Drift-
Chesapeake and Gunvor will now jointly wood LNG facility in Louisiana. Both companies
make a decision on which export terminal natu- have yet to comment on whether the agreement
ral gas will be liquefied and delivered to Gunvor has been extended or cancelled.
on a free-on-board (FOB) basis. The two compa- Following Russia’s invasion of Ukraine, US
nies are anticipating a start date of 2027. LNG exporters have seen demand soar from
“This agreement reflects the powerful com- Europe. In order to support its growing LNG
bination of the premium rock, returns and run- business, Gunvor renewed a $1.565bn loan facil-
way of our competitively positioned Haynesville ity in January to be structured around its LNG
natural gas assets combined with the strength trade flows, including shipping activities.
of our balance sheet and financial position to The company also signed a long-term con-
securely supply global LNG markets,” Chesa- tract last year to purchase LNG from Energy
peake president and CEO Nick Dell’Osso said in Transfer, the developer of the proposed Lake
a statement. Charles LNG terminal in Louisiana.
P10 www. NEWSBASE .com Week 10 09•March•2023
