Gunvor and Vitol to offtake Driftwood LNG

Thursday, 10 June 2021
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Tellurian has signed a 10-year sale and purchase agreements (SPA) with commodity traders Vitol and Gunvor.

The LNG developer will supply three mill tonnes per annum of LNG to each company.

Each deal is worth about $12 bill in revenue over the contract period and the LNG will be supplied from Tellurian's planned 27.6 mill tonnes per year Driftwood export project in Louisiana.

Tellurian Executive Chairman, Charif Souki said via a video link last week that the company remained "highly confident we will start construction this summer and issue notice to proceed to Bechtel in the first quarter of next year."

Tellurian has already contracted Bechtel to build the liquefaction plant.

Both the Vitol and Gunvor deals were indexed to a combination of the Japan Korea Marker (JKM), which was trading near $11 per mmBtu last week, and the Dutch Title Transfer Facility (TTF), which traded close to its highest since September, 2018.

Gunvor Singapore will take the LNG on a free on board (FOB) basis from Driftwood to be built near Lake Charles, Louisiana. 

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