News Post
Petronet and Tellurian sign $2.5B MoU for up to 5 MMtpy LNG
Tellurian Inc and Petronet LNG Limited India announced that the two companies have signed a Memorandum of Understanding (MOU) wherein Petronet and its affiliates intend to negotiate the purchase of up to five million tonnes per year of liquefied natural gas from Driftwood, concurrent with its equity investment, which remains subject to further due diligence and approval of its board of directors. Tellurian and Petronet will endeavor to finalize the transaction agreements by 31 March 2020.
The MoU was signed at the GasTech energy forum in the presence of Indian Prime Minister Narendra Modi, as part of a wider cooperation between India and the United States. India is expanding its pipeline network and building new LNG import terminals to encourage the use of cleaner fuel. India could increase its trade footprint at a time when the United States and China are in the midst of a tit-for-tat trade war. India is expanding its pipeline network and building new LNG import terminals to encourage the use of cleaner fuel. Modi has set a target to raise the share of natural gas in India’s overall energy mix to 15% in the next few years from about 6.5%.
President and CEO Meg Gentle said, “Petronet, India’s largest LNG importer, will be able to deliver clean, low-cost, and reliable natural gas to India from Driftwood. Increasing natural gas use will enable India to fuel its impressive economic growth to achieve Prime Minister Modi’s goal of a $5 trillion economy while contributing to a cleaner environment. It is an honor to sign the MOU with Petronet in the presence of H.E. Prime Minister Narendra Modi. At Tellurian, we look forward to a long and prosperous partnership with Petronet in the Driftwood project.”
The Driftwood project includes natural gas production, gathering, processing, and transportation facilities, along with Driftwood LNG, a proposed ~27.6 mtpa liquefaction export facility that will be located near Lake Charles, Louisiana on the U.S. Gulf Coast. In April, the U.S. Federal Energy Regulatory Commission (FERC) issued the order granting authorization for Driftwood LNG and the 96-mile Driftwood Pipeline, which will inter-connect the LNG terminal to the U.S. natural gas market.
Sources: Reuters and Tellurian
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