US-based Tellurian has signed a long-term agreement with commodity trader Gunvor Group for three million tonnes per annum (Mtpa) of LNG.
Tellurian will supply the LNG to Gunvor Singapore from the proposed Driftwood LNG in the US on free on board (FOB) basis for ten years.
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Located near Lake Charles, Louisiana, the Driftwood LNG project involves the construction of a 27.6Mtpa LNG terminal and 154.5km of feed gas pipeline. It is being developed in four phases.
Tellurian president and CEO Octávio Simões said: “Tellurian intends to market up to 10 mtpa of LNG in our first phase on a JKM, TTF or blended price basis, as our integrated model provides the flexibility to offer this valuable product.
“We welcome Gunvor, the largest independent global trader of LNG volumes, to Driftwood, and look forward to providing a cleaner fuel to meet growing global energy needs and enable energy access.”
The sales and purchase agreement with Gunvor represents the equivalent of about $12bn in revenue over the ten-year period at today’s LNG prices.
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By GlobalDataIn 2019, Tellurian and Petronet signed a memorandum of understanding (MoU) for the supply of up to 5Mtpa of LNG from Driftwood LNG project.
Planned to be commissioned in 2023, the project will process the gas feed from the existing interstate pipeline system of Columbia Gulf Transmission.
The Driftwood facility will feature five LNG plants with each comprising one gas pre-treatment unit for condensate and water removal, and four liquefaction units.
