Home Market News Chesapeake Energy Anticipates More LNG Supply Deals Following Gunvor HOA

Chesapeake Energy Anticipates More LNG Supply Deals Following Gunvor HOA

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Chesapeake Energy Anticipates More LNG Supply Deals Following Gunvor HOA

Chesapeake Energy (NASDAQ: CHK) is expecting to secure additional liquefied natural gas (LNG) supply agreements in its effort to expand its international gas production. Executive VP Josh Viets revealed that the company aims to increase its gas production for international markets from its current 7% volume to as much as 20%. These comments were made during the Marcellus Shale Coalition’s Shale Insights conference in Erie, Pennsylvania. Viets also mentioned that Chesapeake is finalizing the terms of a 15-year supply deal with Gunvor, with several more agreements in the pipeline.

Chesapeake’s agreement with Gunvor involves supplying 2 million metric tons of LNG per year, positioning its Haynesville gas directly into Asian markets. The company has made investments in Momentum Midstream’s NG3 project, which is expected to start connecting additional Haynesville gas to the Gulf Coast by 2024. However, the Marcellus shale, while being a reliable source of cash flow for Chesapeake, lacks the necessary infrastructure for exports.

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