Petronet LNG (PLNG) arranged a conference call to allay investor concerns about the recently signed MoU with Tellurian, US. PLNG signed a non-binding agreement with Tellurian in the US on 21st Sep’19, which envisages an LNG purchase contract of up to 5mmt. Phase-I (16.6mmt) of the project is expected to be complete by 2023, and PLNG might invest ~$2.5 bn for ~18% stake in the project. The contract is on behalf of PLNG or its affiliates, which can directly participate in equity investment too.
The company reiterated that it would enter into a definitive contract only if it gets back-to-back customers, either from its promoters or other buyers. In the absence of any participation from the affiliates, PLNG might contract for 1- 2mmt of LNG and limit its investment to ~$0.5-1.0 bn (company has cash of ~$0.5 bn as of end-FY19).
