Trafigura, a market leader in the global commodities industry, has signed a long-term LNG agreement with Tourmaline, Canada’s largest natural gas producer. This marks the first time that Trafigura and Tourmaline have signed an LNG agreement together.

Tourmaline has increased its exposure to JKM by entering into a 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 the potential for extension up to December 2039.

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 (less associated deductions) until December 2026.

Mike Rose, President and CEO 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 said: “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. 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.”

About Trafigura

Trafigura is a leading commodities group, owned by its employees and founded 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world – responsibly and efficiently. We deploy infrastructure, market expertise and our worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through joint ventures H2Energy Europe and Nala Renewables.

The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, and our Impala Terminals joint venture. The Group employs over 12,000 people and is active in 156 countries.

About Tourmaline

Tourmaline is Canada's largest and most active natural gas producer dedicated to producing the lowest emission and lowest-cost natural gas in North America. We are an investment grade exploration and production company providing strong and predictable operating and financial performance through the development of our three core areas in the Western Canadian Sedimentary Basin. With our existing large reserve base, decades-long drilling inventory, relentless focus on execution and cost management, and industry-leading environmental performance, we are excited to provide shareholders an excellent return on capital, and an attractive source of income through our base dividend and surplus free cash flow distribution strategies.