Chesapeake to buy LNG from Delfin

Chesapeake Energy has entered into an agreement with Delfin to purchase LNG at a Henry Hub price, it said on February 13.

The deal involves Chesapeake buying around 0.5mn tonnes/year of LNG from US floating LNG developer. These volumes would then be delivered on a free on board (FOB) basis to commodity trader Gunvor. The sales price is linked to the Japan Korea Marker and is set for a 20-year period, starting in 2028.

These purchased volumes constitute a portion of Gunvor's total 2mn tonnes/year arrangement with Chesapeake. Additionally, this agreement adds to Gunvor's previous deal with Delfin, signed in November of last year, for the supply of up to 1mn tonnes/year of LNG.

The proposed Delfin Deepwater Port is located approximately 40 nautical miles off the Louisiana coast in the Gulf of Mexico. This port is designed as a four-train floating LNG facility, boasting a combined liquefaction capacity of 13.3mn tonnes/year.

Delfin has already secured commercial arrangements for LNG sales and liquefaction services, moving closer to a final investment decision on the first three trains.