Indian LNG Importer Might Join Louisiana Project
Petronet LNG Limited INDIA (PLL) may invest in Tellurian Inc.’s proposed Driftwood LNG liquefaction and export facility near Lake Charles, La., Tellurian reported Thursday.
“Petronet is India’s largest LNG importer, operating 20 million tonnes per annum (mtpa) of receiving terminal capacity with an additional 2.5 mtpa of capacity under construction at its Dahej expansion and a further 5 mtpa proposed at Gangavaram,” Tellurian President and CEO Meg Gentle said in a written statement.
PLL is exploring a possible Driftwood equity investment under a memorandum of understanding that it has signed with Tellurian. The approximately 27.6-mtpa Louisiana project would also include natural gas production, gathering and processing infrastructure as well as the 96-mile (154.5-kilometer) Driftwood Pipeline.
Driftwood LNG and Driftwood Pipeline have received their final environmental impact statement (EIS), stated Tellurian, adding that it anticipates a final investment decision during the first half of this year. Should the project advance, Tellurian also expects a first half 2019 construction start. The company added that it envisions operations beginning in 2023.
“We support Petronet’s vision to be a key energy provider to India and look forward to delivering clean, low-cost and reliable natural gas from Driftwood LNG,” Gentle noted.
As this April 2018 Bloomberg article about Tellurian notes, the company – founded by LNG industry veterans Charif Souki and Martin Houston – has been developing the project using an unorthodox approach to funding such investments. In effect, Tellurian has minimized debt by seeking upfront payments from investors who would own the project and obtain LNG at cost, the article states.
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