Chesapeake Energy, Delfin LNG, Gunvor Sign Long-Term Liquefaction Offtake Agreement

Chesapeake Energy Corporation (Chesapeake) together with some of its subsidiaries, Delfin LNG LLC (Delfin) and Gunvor Group Ltd, through Gunvor Singapore Pte Ltd (Gunvor), announced the entrance into a liquefied natural gas (LNG) export deal that includes executed sales and purchase agreements (SPAs) for long-term liquefaction offtake.

Under the SPA, Chesapeake will purchase approximately 0.5 MTPA of LNG from Delfin at a Henry Hub price and contract targeted start date in 2028, then deliver to Gunvor on an free on board basis with the sales price linked to the Japan Korea Marker 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,” said Nick Dell’Osso, Chesapeake president and chief executive officer (CEO). “We are pleased to formalize our agreement which provides diversification and access to global LNG pricing while enabling the delivery of affordable, reliable, lower-carbon energy to markets in need.”

“We are excited to partner with Chesapeake,” said Dudley Poston, Delfin CEO. “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.”

“We continue to provide reliable and competitive logistics services to our partners by utilizing our fleet of vessels procured via term charters and equity ownership. Gunvor looks forward to establishing additional agreements with the companies in the near future,” said Kalpesh Patel, co-head of LNG Trading and a member of the Executive Committee of Gunvor.