Sumitomo Signs LNG Supply Deal with Cabot

Cabot Oil & Gas on Thursday said it will supply 350,000 MMBtu per day of LNG to Pacific Summit Energy LLC, a wholly owned subsidiary of Sumitomo Corporation, for a period of 20 years.

The gas will come from Cabot’s Marcellus Shale position and sales will commence when the Dominion Cove Point LNG liquefaction project starts up in 2017.

"We are extremely excited to be partnering with Sumitomo to provide a long-term source of natural gas to the Cove Point LNG facility and ultimately to the people of Japan," said Dan O. Dinges, Chairman, President and Chief Executive Officer.

Cabot recently achieved a new gross production record in the Marcellus of 1.5 billion cubic feet (Bcf) per day. The company has increased its 2013 production growth guidance range from 44 to 54 percent to 50 to 55 percent. 2014 production growth guidance for the company remains unchanged at 30 to 50 percent.

 
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