TheGlobe.com Inc (TGLO)

[senor_c]

"Expand is negotiating to serve as Delfin’s gas supply manager,"
(More context about Delfin deal with Expand from Earnings Call)

LNG and Gulf Coast positioning: Delfin agreement and portfolio approach
Management repeatedly pointed to LNG as a key driver of Gulf Coast demand and Expand’s commercial strategy. Wichterich said the company’s Gulf Coast assets sit “at the epicenter of LNG,” adding that LNG facilities are Expand’s largest customers today. He cited third-party reports indicating Expand holds 72% of the lowest break-even inventory in the Haynesville and said the company can deliver certified natural gas directly to LNG facilities with minimal risk of “basis floods.”

Wichterich and EVP of Marketing and Commercial Dan Turco discussed the company’s newly announced offtake SPA with Delfin LNG for 1.15 million tons per year. Wichterich said Expand sees value in the transaction because it is “bigger,” reaches market sooner, and is cheaper compared to a prior Delfin agreement that has been terminated.

Turco said Expand previously had an agreement with Delfin tied to “Vessel Two,” but after a conditions-precedent date passed, Expand terminated that contract and also terminated a related back-to-back contract. He said Expand then evaluated “Vessel One” and took a larger position, which he characterized as supporting the company’s integrated strategy—reaching premium markets, facilitating new demand, and enabling a portfolio approach to sales terms, tenors, and indexation.

Turco also said Expand is negotiating to serve as Delfin’s gas supply manager, which he described as managing upstream gas into the facility and managing capacity into the project. He said the role would integrate Expand through the value chain and supports a long-term partnership as Delfin considers additional vessels.

In a separate exchange about the contracting environment, Turco said it is “easy to get” long-term SPAs priced at cost of liquefaction on the supply side, while LNG sales remain relationship-driven and underpinned by long-term contracts. He said Expand is building the LNG effort for the long term, with a portfolio mix of longer-term contracts, shorter-term contracts, and spot exposure.