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Chesapeake Energy signed HOA with Vitol for supply of 1 mil mt/year LNG for 15 years

Chesapeake Energy Corporation and Vitol Inc. on Oct 31 announced the entrance into a Heads of Agreement (HOA) with Chesapeake Energy Marketing L.L.C. a subsidiary of Chesapeake Energy Corporation.

Under the HOA, Chesapeake will supply up to 1 million tonnes of LNG per annum to Vitol with the purchase price indexed to Japan Korea Marker (JKM) for a period of 15 years. Following the execution of the HOA, Chesapeake and Vitol will jointly select the most optimal liquefaction facility in the United States to liquify the gas produced by Chesapeake for delivery to Vitol.  The HOA has a targeted start date in 2028.

In March this year, Chesapeake Energy Corporation and Gunvor Group Ltd announced signing of a Heads of Agreement.  

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

Chesapeake and Gunvor will jointly select the most optimal liquefaction facility in the Unites States to liquify the gas produced by Chesapeake and deliver the LNG to Gunvor on a Free-on-Board ("FOB") basis with a targeted start date in 2027.

editor@lngworldwide.com