Tellurian Seeks New Deals for Gulf Coast LNG Project
(Bloomberg) -- Tellurian Inc. is in talks with unidentified Asian companies to sell almost half the liquefied natural gas output from its proposed Louisiana export terminal, Chairman Charif Souki said in an interview.
Just hours after Indian gas distributor Petronet LNG Ltd.’s chief executive officer signaled a plan to invest in Tellurian’s Driftwood LNG project is dead, Souki told Bloomberg News he’s got other investors interested in buying 12 million metric tons of the terminal’s production annually.
Those deals will be finalized during the first half of 2021, with construction at Driftwood expected to begin during the Northern Hemisphere summer, Souki said on Thursday. He also said Tellurian no longer will employ memorandums of understanding as preludes to more in-depth deal talks. The parley between his company and Petronet was governed by an MOU scheduled to expire next month.
“We view an MOU as a moral commitment, but we’re no longer looking for moral commitments,” Souki said. “We’re looking for real commitments, so we will no longer agree to do MOUs.”
The tete-a-tete between Tellurian and Petronet was closely watched by the global LNG industry as an indicator of whether proposed U.S. LNG projects would attract sufficient financial commitments to begin construction.
Total SE remains Tellurian’s only customer. The French oil giant has committed to invest $500 million and buy 2.5 million tons annually.
Tellurian shares plunged 28% on Thursday in New York after Petronet’s acting CEO Vinod Kumar Mishra said there was no proposal for the company to invest in Tellurian’s project.
--With assistance from Debjit Chakraborty.
© 2020 Bloomberg L.P.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- These Factors Helped Brent Oil Price Break Above $85
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Gaz System to Acquire Gas Storage Poland
- Subsea7 Secures Contract to Service Woodside's Trion
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- EIA Boosts USA Crude Oil Production Forecasts
- TotalEnergies to Acquire TLCS Eyeing Bayou Bend CCS Project
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension