Houston-based oil and gas player Coterra Energy and energy and commodities company Vitol have signed a long-term liquefied natural gas (LNG) sale and purchase agreement (SPA).
Starting in 2027, Coterra is set to deliver 100,000 million British thermal units per day (MMBtu/d) of natural gas, or around 0.7 million tonnes of LNG annually, to Vitol for 11 years. The purchase price will be indexed to Japan/Korea marker (JKM).
Thomas Jorden , Coterra’s Chairman, Chief Executive Officer, and President, believes the United States’ “abundant, low-cost natural gas resource” can help support energy reliability and affordability globally and that the country’s role as a major energy exporter further strengthens its standing on the global stage.
Ben Marshall , Head of Vitol Americas, said: “As the energy landscape continues to evolve, US natural gas production will continue to play a critical role in satisfying the world’s energy needs. Since 2005, Vitol has been serving LNG customers world-wide and this transaction highlights Vitol’s ability to provide innovative gas and LNG solutions as we continue to strengthen our position to safely and reliably deliver cost effective, flexible solutions around the world.”
Earlier this month, Vitol penned a deal to buy 0.5 million metric tons of LNG from China Gas Hongda Energy Trading, a subsidiary of China Gas, on a free-on-board (FOB) basis and sell the same amount to the Chinese company on a delivered ex-ship (DES) basis starting in 2029.