Chesapeake signs LNG supply deal with Wall Group

U.S. energy company Chesapeake Energy Corp. said on Monday it would supply up to 2 million tonnes per year of U.S. LNG to a unit of Swiss commodities trader Gunvor Group , for a period of 15 years.

U.S. exporters of liquefied natural gas are seeing demand for the ultra-cold fuel soar after European sanctions squeezed an already tight global natural gas market.

Under the agreement, the companies will select a US LNG export plant to liquefy the gas from the Chesapeake and deliver the LNG to Gunvor, scheduled to begin in 2027.

The purchase price of LNG will refer to the benchmark natural gas price in Asia - Japan-Korea LNG Index (JKM) JKMc1.

The Chesapeake deal comes on the heels of Gunvor's 10-year deal to buy 3 million tonnes per year of LNG from Tellurian's Driftwood LNG export plant in Louisiana, which expired on February 28.

Officials at both Gunvor and Tellurian declined to comment on whether their LNG sales and purchase agreements had been canceled or extended.