Coterra Energy and Vitol Inc. have formalized an 11-year Sale and Purchase Agreement (SPA) under which Coterra will supply 100,000 MMBtu of natural gas per day to Vitol, equivalent to approximately 0.7 million tonnes of LNG annually. The agreement, commencing in 2027, will feature a purchase price indexed to the Japan-Korea Marker (JKM), marking a significant long-term commitment between two leading energy players aimed at addressing the growing global demand for natural gas.
The SPA leverages the strengths of both companies: Coterra, a key U.S. energy producer, and Vitol, a major global energy and commodities company with extensive experience in LNG trading. The deal aligns with the strategic goals of both companies, combining Coterra’s access to abundant U.S. natural gas resources with Vitol’s expertise in LNG distribution and innovative gas solutions for international markets.
Thomas Jorden, Coterra’s Chairman, CEO, and President, emphasized the importance of U.S. natural gas in enhancing global energy reliability. He noted, “The U.S. has an abundant, low-cost natural gas resource that can help support energy reliability and energy affordability around the world. America’s role as a major energy exporter further strengthens our nation’s standing on the global stage. Coterra is pleased to further expand on our valuable relationship with Vitol.”
Ben Marshall, Head of Vitol Americas, underscored Vitol’s commitment to providing LNG solutions globally and highlighted the SPA as a reflection of Vitol’s adaptability in the energy landscape. “We are pleased to build upon our relationship with Coterra, a premier producer in the US oil and gas space. 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 worldwide, 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.”
About Coterra Energy
Coterra Energy is a U.S.-based oil and gas producer focused on sustainable energy practices, harnessing abundant domestic resources to strengthen both domestic and global energy security. With a commitment to innovation and reliability, Coterra plays a critical role in the ongoing energy transition, providing cost-effective, reliable energy to customers worldwide.
About Vitol
Vitol, a pioneering force in the energy sector, boasts a formidable presence across the entire energy spectrum, encompassing oil, power, renewables, and carbon credits. With operations spanning sourcing, distribution, and risk management, Vitol plays a crucial role in the global energy landscape.
With a daily trade volume exceeding 7 million barrels of crude oil and petroleum products, coupled with the chartering of approximately 6,200 ship voyages annually, Vitol’s global footprint is testament to its commitment to adding value across the entire energy supply chain. Operating from over 40 offices worldwide, Vitol remains at the forefront of innovation, driving sustainable practices and shaping the future of energy distribution.
Source Vitol