Vitol pens gas purchase deal with EOG Resources

Swiss commodity trader Vitol has signed a deal with New York-listed oil and gas company EOG Resources to buy natural gas, it said on February 23. 

Under the terms of the agreement, EOG Resources will supply Vitol with 180,000mm British thermal units/day of natural gas, equivalent to approximately 1.25mn tonnes/year of LNG. Notably, 140,000 mm Btu/day will be at a purchase price indexed to Brent, with the remaining volumes indexed to either Brent or a US Gulf Coast gas index. The agreement spans a decade, set to commence in 2027.

Ben Marshall, Head of Vitol Americas, said: “Vitol has a long history of serving LNG customers world-wide and this transaction underscores Vitol’s ability to provide innovative gas and LNG solutions to North American gas producers looking to access global markets.”

This collaboration follows Vitol's recent 10-year agreement with India’s Gail to supply 1mn tonnes/year of LNG. Additionally, Vitol signed an initial agreement with Chesapeake Energy, a US-based natural gas producer, to purchase 1mn tonne/year year of LNG for 15 years.