Petronet signs MoU with Tellurian to purchase 5Mtpa LNG from Driftwood

US natural gas company Tellurian and India’s Petronet have signed a memorandum of understanding (MoU) for up to five million tonnes per annum (5Mtpa) of liquefied natural gas (LNG).

According to the MoU, Petronet and its affiliates plan to enter talks for the purchase through an equity investment in the Driftwood project.

The Driftwood LNG project is located on the west bank of the Calcasieu River, south of Lake Charles, Louisiana, US.

The transaction is expected to be finalised by March 2020.

Tellurian president and CEO Meg Gentle said: “Petronet, India’s largest LNG importer, will be able to deliver clean, low-cost, and reliable natural gas to India from Driftwood.

“Increasing natural gas use will enable India to fuel its impressive economic growth to achieve Prime Minister Modi’s goal of a $5 trillion economy while contributing to a cleaner environment. It is an honour to sign the MoU with Petronet in the presence of Prime Minister Narendra Modi.

“At Tellurian, we look forward to a long and prosperous partnership with Petronet in the Driftwood project.”

The Driftwood project comprises natural gas production, gathering, processing and transportation facilities. These include Driftwood LNG, a proposed 27.6Mtpa liquefaction export facility that will begin operations in 2023.

In April, the US Federal Energy Regulatory Commission (FERC) granted authorisation for Driftwood LNG and the 96-mile Driftwood Pipeline.

Total and Tellurian signed a series of agreements that strengthen their partnership to develop the Driftwood LNG project during the same month.