Vitol Inc. is progressing its strategy of inking direct supply agreements for U.S. LNG with exploration and production (E&P) companies, this time tapping EOG Resources Inc.

Under the sales and purchase agreement, EOG would supply Vitol with 180,000 MMBtu/d of natural gas, or the equivalent of 1.25 million metric tons/year (mmty) of liquefied natural gas, for 10 years starting in 2027. Vitol would then liquefy those volumes as it continues to take capacity at U.S. terminals.

The majority of the supply, or 140,0000 MMBtu/d would be indexed to Brent crude, and the remainder could be indexed to Brent or a Gulf Coast gas index.

Vitol Americas CEO Ben Marshall said the deal highlights the importance of securing flexible cargoes from the United States to meet growing global natural...