Driftwood LNG faces another struggle as Tellurian fails to qualify for LNG supply to India
Tellurian of the U.S. has reportedly not qualified for a recent tender for LNG supply to the Indian marketplace, as the glut in gas continues to affect the LNG industry. This latest setback follows the recently expired Memorandum of Understanding between Petronet of India and Tellurian for a 5 million tons per year (MMtpy) purchase over 40 years. In order to progress, this agreement likely have to be renegotiated due to current market pricing.
Petronet recently invited bids for the purchase of 1 MMtpy for a 10-year period, with rates reportedly close to spot pricing. 13 suppliers were shortlisted for consideration of this deal, but Tellurian was reportedly not among them.
Tellurian’s Driftwood LNG project is being planned as a 27.6 MMpty export project due to begin in 2024, but construction has not yet begun as it awaits investment commitments from partners. As of July 2020, Total of France has made the only investment with $500 million for 2 MMtpy of LNG. Tellurian is reportedly planning to sell of 51% of Driftwood, while retaining 49% with control over 13.6 MMtpy of LNG product.
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From the April 2018 issue of Hydrocarbon Processing