Chesapeake signs HoA with Vitol for LNG supply

Chesapeake Energy, a US-based natural gas producer, has signed a heads of agreement with Vitol, a global energy and commodity trader, to supply LNG, it announced on October 31.

The US firm will supply 1mn tonnes/year of LNG for 15 years. The deal is indexed to Japan Korea Marker (JKM), the benchmark price for LNG in Asia.

Following the execution of the HoA, the parties will jointly select the “most optimal” liquefaction facility in the US to liquefy the gas produced by Chesapeake for delivery to Vitol.  The HoA has a targeted start date in 2028.

Chesapeake penned a similar deal with Gunvor in March this year.