AlbertPego
Chesapeake Energy (NASDAQ:CHK) expects to add “several more” liquefied natural gas supply deals to its portfolio as it seeks to boost its gas production into international markets to as much as 20% of its volume from 7% currently, Executive VP Josh Viets said this week, according to S&P Global Insights.
Chesapeake (CHK) is finalizing the terms of its 15-year supply deal with Gunvor after announcing a heads of agreement in March for 2M metric tons/year, and “we have several more agreements that we’ll be putting in place down the road,” Viets reportedly told the Marcellus Shale Coalition’s Shale Insights conference in Erie, Pennsylvania.
The company aims to replicate its agreement with Gunvor, which would put its Haynesville gas directly into Asian markets, Viets said; Chesapeake (CHK) has invested in Momentum Midstream’s 2.2B cf/day NG3 project, which is expected to begin connecting additional Haynesville gas to the Gulf Coast in 2024.
The Marcellus shale, by contrast, is too infrastructure constrained for exports, but it is the company’s “cash-flow machine.”
“One of the things we have to accept is just simply this reality that we live in, which is in the Marcellus, it’s unlikely that we see any additional infrastructure,” Viets said.
