Tellurian extends Petronet LNG deal finalisation by two months

US natural gas company Tellurian has extended its expected finalisation of a partnership deal with India’s Petronet by two months.

The deal covers Tellurian’s proposed Driftwood liquefied natural gas (LNG) project in Louisiana, US.

The Driftwood LNG project lies on the west bank of the Calcasieu River, south of Lake Charles.

This move comes after Tellurian and Petronet signed a memorandum of understanding (MoU) for up to five million tonnes per annum (Mtpa) of LNG in September.

Petronet and its affiliates plan to negotiate the purchase of LNG through an equity investment in Tellurian’s subsidiary Driftwood Holdings.

Petronet and Tellurian originally expected the transaction to complete by March 2020. Its extension will last until May.

According to Tellurian, the extension of the LNG deal supports Petronet’s consultative review process.

Tellurian president and CEO Meg Gentle said: “Tellurian was in India this week meeting with Petronet and affiliates to progress negotiations and we are very supportive of Petronet’s process to ensure their robust project review.

“With India’s LNG demand increasing 27% year over year and the Prime Minister Narendra Modi’s plans for $60bn of investments in natural gas infrastructure, India is perfectly poised to benefit from strategic project agreements, such as Petronet’s equity investment in Driftwood.”

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.

In the same month, Total and Tellurian signed a series of agreements to develop the Driftwood LNG project.