US exploration and production company Chesapeake Energy Corporation will supply Swiss energy firm Vitol with up to one million tonnes per annum of liquified natural gas (LNG) under a newly signed Heads of Agreement (HOA).
Chesapeake and Vitol will together pick the most optimal liquefaction in the US to liquify the gas produced by Chesapeake to be supplied to Vitol. Supply is expected to start in 2028.
Nick Dell’Osso, President and CEO of Chesapeake, said he is pleased to expand the company’s relationship with Vitol and looks forward to entering into additional agreement as export capacity continues to come online.
He continued, “Today’s announcement marks another important step on our path to ‘be LNG ready’, and is further recognition of the premium rocks, returns, and runway of our advantaged portfolio and the strength of our financial position.”
Ben Marshall, Head of Vitol Americas, adds that the global energy landscape has changed significantly in the past two years, which has highlighted the importance of US natural gas production and liquefaction in satisfying the world’s energy needs.
“Global LNG demand is experiencing tremendous growth and Vitol continues to strengthen its position to safely and reliably deliver cost effective, flexible solutions to our customers around the world,” he added.
A statement released by the White House in April (2023) said that the US more than doubled its target to ensure delivery of an additional 15 billion cubic meters of LNG to the EU in 2022.
US exports to the EU were 56 billion cubic meters, up from 22 billion cubic meters in 2021. The EU was the largest destination for US LNG exports, accounting for more than 52% of supplies. At the end of 2022, Russian gas accounted for only 16% of the EU’s gas imports, down from 37% in March 2022.
Read more: US to lead global LNG liquefaction capacity additions through 2027
Asia-Pacific Industrial Gases Conference 2023
Decarbonisation and how the Asia-Pacific region pragmatically delivers against its sustainability needs in the near-term will be in focus at gasworld’s Asia-Pacific Industrial Gases Conference 2023 in Kuala Lumpur, Malaysia this December.
Join gasworld for its show-stopper 2.5 day event at the Renaissance Hotel & Convention Centre in Kuala Lumpur, Malaysia under the theme of Delivering On the Promise of Growth.
Taking place from 5-7 December 2023, the conference will tackle China’s clean energy and industrial gas build-out, the hydrogen society in the APAC region, the practical means of delivering decarbonisation in emerging economies in the short-term, the economic climate in Asia-Pacific and the local industrial gas markets, electronics and specialty gases in Southeast Asia, and so much more besides.
To attend, sponsor and for more information, visit www.gasworldconferences.com
