Tellurian pens LNG supply deal with Gunvor
US LNG developer Tellurian announced on May 27 it had reached a 10-year deal to supply 3mn metric tons/year of LNG to commodities trader Gunvor from its planned Driftwood terminal in Louisiana, bringing the project a key step closer to realisation.
The contract is indexed to Asia's JKM and the Dutch TTF indices, netted back for transportation charges, and covers LNG deliveries on a free on board basis. Tellurian estimates that the deal would bring in $12bn in revenues over the 10-year period at today's prices.
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Tellurian plans to market up to 10mn mt/yr of LNG supply from the first 16.5mm mt/yr phase of Driftwood. The company hopes to launch the terminal in 2025, but it is yet to take a final investment decision, because of delays securing customers for its gas.
France's Total signed a heads of agreement in 2019 to offtake 2.5mn mt/yr of LNG from the project and invest up to $900mn in its development. India's Petronet had expressed interest in becoming an investor and offtaker last year, but later ruled out its involvement.