Petronet LNG to buy stake, source 5mt LNG from Driftwood project
Petronet LNG Ltd, India’s biggest LNG importer, has signed an agreement with US gas producer Tellurian Inc., for a potential equity investment of about $2.5 billion and purchase of as much as 5 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from the Driftwood project.
Tellurian said it will deliver LNG on free-on-board (fob) basis to Petronet on the US Gulf Coast for between $3-4 per metric million British thermal unit (mmbtu), which translates into “lowest cost LNG on the water”. The delivered cost of LNG in India will be higher after factoring the shipping cost.
The $28 billion Driftwood project includes natural gas production, processing and transportation facilities, along with Driftwood LNG, a proposed 27.6 mtpa liquefaction export facility located near Lake Charles, Louisiana on the US Gulf Coast.
