Chesapeake Energy Corporation, Delfin LNG LLC and Gunvor Group, through Gunvor Singapore Pte announced the entrance into a liquefied natural gas (LNG) export deal that includes executed Sales and Purchase Agreements (SPA) for long-term liquefaction offtake.
Under the SPA, Chesapeake will purchase approximately 0.5 million tonnes (mtpa) of LNG per annum from Delfin at a Henry Hub price and contract targeted start date in 2028 then deliver to Gunvor on an FOB basis with the sales price linked to the Japan Korea Marker (“JKM”) for a period of 20 years. These volumes will represent 0.5 mtpa of the previously announced up to 2 mtpa HOA with Gunvor.
Today’s announcement cements an important step on our path to ‘Be LNG Ready’ and is further recognition of the depth of our portfolio and strength of our financial position.
..Nick Dell’Osso, Chesapeake President and CEO, said.
Dudley Poston, Delfin CEO, said: “We are excited to partner with a premier company like Chesapeake. We believe our unique liquefaction solution provides Chesapeake with commercial flexibility with a reduced environmental footprint, while providing a much-needed source of additional supply to key US allies and the global LNG market.”
This deal represents an important step in finalizing the 0.5 mtpa out of our total of 2.0 mtpa arrangement with Chesapeake, while expanding our existing cooperation with Delfin.
..Kalpesh Patel, Co-Head of LNG Trading and a member of the Executive Committee of Gunvor, said.
