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Trafigura indications long-term gas offtake deal with Canada's NuVista Energy

Product trading home Trafigura has actually signed a longterm gas offtake arrangement with NuVista Energy, giving the midsize Canadian manufacturer direct exposure to international melted natural gas (LNG). market rates, the business said on Friday.

NuVista will provide 21,000 metric million British thermal. units each day (MMbtu/d) of natural gas to Trafigura with the. purchase price indexed to the Japan Korea Marker (JKM) for a. duration of as much as 13 years starting Jan. 1, 2027.

The JKM is the LNG benchmark price evaluation for area. physical cargoes in Asia and the deal opens access to international. LNG markets for Calgary, Alberta-based NuVista at a time when. Canadian gas prices are struggling.

For over a decade of growth, we have focused on making sure. considerable diversity in our North American natural gas sales. areas to take full advantage of returns on our condensate-rich natural. gas, NuVista CEO Jonathan Wright stated in a declaration.

We are exceptionally happy to now make our first entry to. the world LNG markets.

NuVista produces around 83,000 barrels of oil equivalent per. day (boepd) from Canada's Montney region, among The United States and Canada's. leading shale plays.

The handle Trafigura continues a recent pattern of Montney. manufacturers signing offers to increase exposure to LNG markets. Canada does not yet have any LNG export terminals, although the. Shell-led LNG Canada project is due to start running. next year and 2 other smaller terminals are under. building.

Trafigura also signed a seven-year offtake contract. with Canada's biggest gas company Tourmaline Oil Corp. in January, while producer ARC Resources. entered into a supply contract with LNG company Cheniere Energy. last year.

(source: Reuters)