NuVista produces approximately 83,000 barrels of oil equivalent per day (boepd) from the Montney region. Credit: Wirestock Creators/Shutterstock.

Commodities trading company Trafigura has entered into a long-term natural gas supply agreement with Canada’s NuVista Energy.

NuVista Energy, which produces gas from the Alberta Deep Basin’s Montney formation, will supply Trafigura with 21,000 metric million British thermal units per day of natural gas.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The purchase price will be linked to the Japan Korea Marker (JKM), a benchmark for liquefied natural gas (LNG) prices in Asia.

The agreement, set to begin on 1 January 2027, will remain in effect for up to 13 years.

This agreement grants Calgary-based NuVista access to the global LNG markets at a time when Canadian gas prices are under pressure.

NuVista CEO Jonathan Wright said: ”For over a decade of growth, we have prioritised ensuring significant diversity in our North American natural gas sales locations to maximise returns on our condensate-rich natural gas.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We are extremely pleased to now make our first entry to the world LNG markets with this long-term agreement with Trafigura, one of the world’s leading LNG, energy and commodities groups.” 

NuVista produces approximately 83,000boepd from the Montney region.

Trafigura global head of gas, power and renewables Igor Marin said: “We are delighted to be entering into a long-term offtake agreement with NuVista, which has become a leading E&P [exploration and production] producer in the Alberta Deep Basin. Canada’s gas producers are now creating an important new connection to global LNG markets.

“The signing of our first agreement with NuVista reinforces our dedication to these markets and to the growth of our long-term portfolio.”

The agreement with Trafigura aligns with a growing trend among Montney producers to secure deals that enhance their access to LNG markets, according to Reuters.

While Canada currently lacks operational LNG export terminals, the Shell-led LNG Canada project is expected to begin operations next year, with two smaller terminals also under construction.

Additionally, ARC Resources entered into a supply agreement with LNG company Cheniere Energy in 2022, reflecting the increasing interest in linking Canadian gas production to global LNG markets.

Last month, Trafigura also secured a seven-year offtake agreement with Tourmaline Oil and formed a joint venture with Meroil in to enhance fuel storage and logistics at the Port of Barcelona.