India’s Petronet LNG has inked a MoU with US liquefied natural gas (LNG) developer Tellurian Inc for up to five million tonnes of LNG through equity investment in Driftwood Holdings, a subsidiary located in Louisiana.
The agreement was inked on Saturday on the sidelines of the meeting between Prime Minister Narendra Modi with oil sector CEOs in Houston, his first engagement after arriving in the US.
Launched in 2016 by LNG industry veteran Charif Souki, Tellurian LNG obtained a permit to build the company’s proposed Driftwood LNG export terminal in April.
Driftwood LNG is designed and permitted to produce up to 27.6 million metric tonnes of LNG per year.
According to the MoU, Petronet will make an investment to purchase an interest in Driftwood Holdings that will give Petronet the right to purchase up to 5 million tonnes per annum of LNG from Phase I or Phase II of the project.
Tellurian and Petronet will aim to finalise the transaction agreements by March 31, 2020.
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