U.S. liquefied natural gas (LNG) developer Tellurian Inc said on Thursday it had signed a 10-year sale and purchase agreement with commodity trader Vitol for 3 million tonnes per annum (MTPA) of LNG.<\/p>\n
It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. Each deal is worth about $12 billion in revenue over the contract period.<\/p>\n
Tellurian shares soared around 24% on the news to their highest since February 2020, putting the stock up more than 120% during the past 10 days.<\/p>\n
The LNG would come from Tellurian’s proposed 27.6-MTPA Driftwood export project in Louisiana.<\/p>\n
Tellurian Executive Chairman Charif Souki said in a video this week that the company remained “highly confident we will start construction this summer and issue notice to proceed to Bechtel in the first quarter of next year.”<\/p>\n
Tellurian has a contract with Bechtel to build the liquefaction plant.<\/p>\n
Credit Suisse analyst Spiro Dounis said Tellurian’s rate of commercial progress has accelerated “from virtually nothing to once per week. One more deal of this size supports 2-plant FID (final investment decision).”<\/p>\n
Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG.<\/p>\n
Tellurian CEO Octavio Simoes said the company “continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want.”<\/p>\n
The Vitol and Gunvor deals were indexed to a combination of the Japan Korea Marker (JKM), which is trading near $11 per million British thermal units (mmBtu), and the Dutch Title Transfer Facility (TTF), which is trading close to its highest since September 2018.<\/p>\n
The U.S. Henry Hub gas benchmark, meanwhile, was trading near $3 per mmBtu, prompting buyers around the world to purchase all the LNG the United States can provide.<\/p>\n","protected":false},"excerpt":{"rendered":"
U.S. liquefied natural gas (LNG) developer Tellurian Inc said on Thursday it had signed a 10-year sale and purchase agreement with commodity trader Vitol for 3 million tonnes per annum (MTPA) of LNG. It is the second 10-year, 3-MTPA agreement Tellurian has announced in a week, following a deal with commodity trader Gunvor Group. Each deal is worth about $12 billion in revenue over the contract period. Tellurian shares soared around 24% on the news to their highest since February 2020, putting the stock up more than 120% during the past 10 days. The LNG would come from Tellurian’s proposed […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-418778","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/418778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=418778"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/418778\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=418778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=418778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=418778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}