The fine print of Petronet’s agreement with Tellurian will explain why the Indian PSU chose to overcome its strong reservations over the terms of the deal that it eventually signed with the US company.
Petronet on Saturday signed an MoU with Houston-based Tellurian under which the Indian company will invest $2.5 billion for a 20 per cent equity stake in the US firm’s Driftwood project and import five million tonnes of LNG a year for 40 years.
Industry sources said the issue was discussed at the company’s board meeting around April-May where the members felt the company should not go ahead with the deal because of the changing global gas market dynamics as the fuel was available in abundance at rockbottom prices.
