Gunvor signs long-term LNG supply deal with Delfin Midstream

LONDON, May 6 (Reuters) - Commodity trading house Gunvor has signed a long-term liquefied natural gas (LNG) sale and purchase agreement with Delfin Midstream, it said in a statement on Wednesday.

It is the second such deal between the two companies in two-and-a-half years. Delfin said in November 2023 it had entered into a long-term deal with Gunvor to supply 500,000 to 1 million metric tons of LNG per year for at least 15 years.

Under the latest agreement, Gunvor will receive 300,000 tons of LNG per year for 20 years from the Delfin FLNG1 facility, located offshore near the Louisiana coast.

"The deal represents further enhancement of Gunvor’s LNG portfolio and together with our robust fleet, we will continue to position ourselves as a reliable supplier of LNG to all destinations around the globe," Gunvor's co-head of LNG Kalpesh Patel said in the statement.

It also aligns with Gunvor's push to boost U.S. investments after a management buyout late last year that saw American citizen Gary Pedersen take the helm of the Swiss-based trading house. Its U.S. LNG portfolio includes deals with Chesapeake and Glenfarne.

Global demand for LNG has surged since Russia's invasion of Ukraine upended gas markets in 2022, driving buyers in Europe and Asia to lock in long-term supply deals with U.S. exporters.