The giant commodities group Trafigura has inked for the first time a long-term liquefied natural gas (LNG) agreement with Canada’s largest natural gas producer, Tourmaline.
Tourmaline has increased its exposure to Japan Korea Marker (JKM), a pricing point for liquefied natural gas in Northeast Asia.
Tourmaline said it signed the netback agreement with Trafigura based on 62,500 mmbtu/d of Liquified Natural Gas (~0.5mpta) for a seven-year term starting January 2027, with an option for extension up to December 2039.
In addition to the above, Tourmaline has also expanded its international exposure to include a physical netback agreement with Trafigura Canada Limited which will receive Dutch TTF index pricing.
Starting in March 2024, Tourmaline will deliver 50,000 mmbtu/d of natural gas at AB-NIT and receive a Dutch TTF index price until December 2026.
Mike Rose, president and chief executive for Tourmaline, said: “We are excited about our recent transaction with Trafigura and the opportunity to expand our exposure to international LNG markets.”
Richard Holtum, global head of gas, power and renewables for Trafigura, noted: “We’re delighted to build on our relationship with Tourmaline at a time when Canadian gas producers are starting to play a pivotal role in global LNG markets.”
He continued, “Today’s agreements support our commitment to these markets and to the growth of our long-term portfolios, while demonstrating our ability to provide innovative, tailor-made solutions and ensuring security of supply for our customers worldwide.”
