GLNG: Gunvor secures long-term deal with Energy Transfer for US LNG

Swiss-based commodity trader Gunvor is to buy 2mn tonnes per year (tpy) of LNG from Energy Transfer's proposed Lake Charles LNG export terminal.

Gunvor agreed to a 20-year FOB deal as European buyers look to tie in long-term supply deals for US LNG supplies at below the current high spot prices.

Energy Transfer also said on May 3 that it had signed a 400,000 tpy Sale and Purchase Agreement (SPA) with South Korea’s SK Gas Trading for gas from Lake Charles.

Europe is trying to reduce its exposure to Russian pipeline gas as the war in Ukraine causes price volatility and sanctions on Russian gas.

Gunvor is to pay prices indexed to the US Henry Hub benchmark plus a fixed liquefaction charge. First deliveries are expected as early as 2026.

The deal will become fully effective upon the satisfaction of certain conditions, including Energy Transfer taking a final investment decision (FID) on the Lake Charles project, the companies said in a joint statement.