Deadline for Tellurian-Petronet LNG supply and investment deal now extended to end of May

Friday, 28 February 2020
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Tellurian Inc., the developer of the Driftwood LNG export plant, said it had extended its accord with Petronet LNG of India on seeking a firm agreement for the purchase of LNG volumes and the Indian company investing in the venture.

The accord involving the supply of 5 million tonnes per annum of LNG was signed in September 2019 with the aim of being finalized by March 31, 2020. 

“The timing has been extended to May 31, 2020 to support Petronet’s consultative review process,” said Tellurian.

Tellurian and Petronet are also negotiating an equity investment in the Driftwood project in Louisiana by the Indian firm of up to $2.5 billion.

The Driftwood plant is proposed for the west bank of the Calcasieu River, south of Lake Charles, and with output of just over 26 MTPA.

“Tellurian was in India this week meeting with Petronet and affiliates to progress negotiations, and we are very supportive of Petronet’s process to ensure their robust project review,” said Tellurian President and Chief Executive Meg Gentle.

“With India’s LNG demand increasing 27 percent year-over-year, and  Prime Minister Narendra Modi planning for $60Bln of investments in natural gas infrastructure, India is perfectly poised to benefit from strategic project agreements such as Petronet’s equity investment in Driftwood,” added Gentle.

Petronet currently operates India’s busiest regasification facility at Dahej, north of Mumbai, with 15 million tonnes per annum of capacity and six storage tanks. The terminal is being expanded to handle 17.5 MTPA.

The company was formed by the Government of India in 1998 specifically to import LNG and will be expanding its interests in the years ahead into LNG fuel distribution.

Shareholders in Petronet, which began operations in 2004, include the other big Indian energy players, Gas Authority of India, Indian Oil Corp., Oil and Natural Gas Corp. and Bharat Petroleum Corp.

 

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