Houston: India’s Petronet LNG signed a Memorandum of Understanding (MoU) from US Liquefied Natural Gas (LNG) developer Tellurian Inc. through equity investment in Driftwood Holdings, a Louisiana-based subsidiary, for 5 million tonnes of LNG. The agreement was held in Houston on Saturday on the sidelines of a meeting with Prime Minister Narendra Modi and the CEOs of the oil sector.
Sheriff Soukey, head of the LNG industry launched in 2016, Tellurian LNG, in April, obtained a permit to build the company’s proposed driftwood LNG export terminal.
To produce up to 27.7 million metric tonnes of LNG per year, Driftwood LNG has been designed and its permit obtained.
According to the MoU, Petronet will invest in driftwood holding which will give Petronet the right to purchase 5 million tonnes of LNG per annum from the first phase of the project or the second phase.
Tellurium and Petronet will aim to complete the transaction of the agreements by 31 March 2020.