News | Gas | Feb 23rd 2024

Vitol and EOG Resources enter into long-term gas supply agreement indexed to Brent pricing

LNG vessel at sea from a birds eye view

HOUSTON, February 22, 2024 –Vitol Inc. (“Vitol”) today announced the execution of a natural gas sale and purchase agreement (“SPA”) with EOG Resources, Inc. (“EOG”) (NYSE: EOG). Under the SPA, EOG will supply 180,000 MMBtu/d of natural gas (equivalent of approximately 1.25 million tonnes of LNG equivalent per annum) to Vitol with 140,000 MMBtu/d at a purchase price indexed to Brent Crude Oil (“Brent”) and the remaining volumes indexed to Brent or a US Gulf Coast gas index for a period of 10 years commencing in 2027.

Ben Marshall, Head of Vitol Americas, said: “We are excited to build upon our relationship with EOG, a leader in US oil and gas space. The global energy landscape continues to evolve, showcasing the importance of US natural gas production in satisfying the world’s energy needs. 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. Global LNG demand is experiencing significant growth and Vitol continues to strengthen its position to safely and reliably deliver cost effective, flexible solutions to our customers around the world.”

D. Lance Terveen, EOG’s Senior Vice President, Marketing, said: “We are pleased to partner with Vitol, a premier energy and commodities company. Adding a Brent-linked agreement with start-date certainty further expands EOG’s pricing exposure to international natural gas markets and growing LNG demand. EOG is executing on its marketing strategy to diversify our access to customers across multiple end markets for our growing production of reliable and affordable natural gas.”

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