OKLAHOMA CITY – Chesapeake Energy Corporation (NASDAQ: CHK) and Gunvor Group Ltd today announced that Gunvor Singapore Pte Ltd (“Gunvor”) has entered into a Heads of Agreement (“HOA”) with Chesapeake Energy Marketing L.L.C. (“Chesapeake”) a subsidiary of Chesapeake Energy Corporation.
Under the HOA, Chesapeake will supply up to 2 million tonnes of LNG per annum to Gunvor with the purchase price indexed to Japan Korea Marker (“JKM”) for a period of 15 years. Following the execution of the HOA, Chesapeake and Gunvor will jointly select the most optimal liquefaction facility in the United 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.
Nick Dell’Osso, Chesapeake President and Chief Executive Officer, said “This agreement reflects the powerful combination of the premium rock, returns, and runway of our competitively positioned Haynesville natural gas assets combined with the strength of our balance sheet and financial position to securely supply global LNG markets. We are pleased to partner with Gunvor, a leading global commodity and energy logistics company with a deep LNG track record, to deliver independently certified reliable, affordable, lower carbon energy to markets in need. Today marks an important initial step on our path to being LNG ready and we look forward to entering into additional agreements while export capacity continues to come online.”
Kalpesh Patel, Co-Head of LNG Trading and a member of the Executive Committee of Gunvor, said: “We are excited to establish this partnership with Chesapeake which will further enhance our global LNG portfolio. Our trading expertise together with our robust shipping fleet will not only contribute to the competitive shipping costs but also ensure reliable offtake operations for Chesapeake and the liquefaction facility which we will jointly select. We very much look forward to the long-term relationship with Chesapeake.”
Headquartered in Oklahoma City, Chesapeake Energy Corporation is powered by dedicated and innovative employees who are focused on discovering and responsibly developing our leading positions in top U.S. oil and gas plays. With a goal to achieve net zero GHG emissions (Scope 1 and 2) by 2035, Chesapeake is committed to safely answering the call for affordable, reliable, lower carbon energy.
About Gunvor Group
Gunvor is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. Gunvor has strategic investments in industrial infrastructure — refineries, pipelines, storage and terminals — that complement our core trading activity and generate sustainable value across the global supply chain for our customers. The company, which in 2021 generated US $135 billion in revenue on 240 million MT of volumes, is the leading independent global trader of liquefied natural gas (LNG).