Petronet LNG, Tellurian to finalize $2.5 bln deal soon

India’s Petronet LNG, the country’s largest liquefied natural gas importer, is set to sign a $2.5 billion deal with the U.S. LNG project developer Tellurian. 

Citing sources close to the matter, the deal is set to be signed during president Trump’s visit to India later this month.

The deal would follow the memorandum of understanding signed in September last year.

Under the MoU, the two companies intend to negotiate the supply deal, concurrent with Petronet’s equity investment, which remains subject to further due diligence and approval of its board of directors.

The pair initially intended to finalize the deal by March 31, 2020. It entails Petronet LNG’s purchase of up to 5 mtpa from the Driftwood export project near Lake Charles, Louisiana.

One source told Reuters the supply is set to start in 2024 and rise to the agreed amount of 5 mtpa in 2028.

The Driftwood project includes natural gas production, gathering, processing, and transportation facilities, along with Driftwood LNG, a proposed 27.6 mtpa liquefaction export facility on the U.S. Gulf Coast.

LNG World News Staff