Chesapeake Energy Corp. has signed its first binding agreement to buy LNG as it advances a strategy unveiled two years ago to gain exposure to the international gas market.

The company said it has signed a sales and purchase agreement (SPA) to buy 0.5 million metric tons/year (mmty) of the super-chilled fuel from the proposed Delfin floating liquefied natural gas project offshore Louisiana at prices linked to Henry Hub. The Delfin project hasn’t been sanctioned yet, but the SPA targets 2028 for the LNG purchases to start. 

Chesapeake has also agreed to sell those volumes on a free-on-board basis to global commodities trader Gunvor Group Ltd. at prices linked to the Japan-Korea Marker for 20 years. Chesapeake signed a tentative heads of agreement (HOA) last year to supply up to...