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Petronet Plans to Source around 5 Mtpa LNG from Tellurian’s Louisiana Project

Petronet LNG Ltd plans to source around 5 million tonnes per annum (mtpa) liquefied natural gas (LNG) from US developer Tellurian Inc’s Driftwood project in Louisiana.

 

An agreement to negotiate the same was inked on Sunday morning (India time) between India’s largest LNG importer and Tellurian in the presence of Prime Minister Narendra Modi in Houston, where he is meeting the chief executives of energy majors among his first engagements during his weeklong visit to the US. India has been sourcing liquified natural gas and oil from the US, with Indian firms investing $4 billion in US shale gas assets.

 

“Tellurian Inc. and Petronet LNG Limited announced today that the two companies have signed a Memorandum of Understanding (MoU) wherein Petronet and its affiliates intend to negotiate the purchase of up to five million tonnes per annum (5 mtpa) of liquefied natural gas (LNG) from Driftwood, concurrent with its equity investment, which remains subject to further due diligence and approval of its board of directors. Tellurian and Petronet will endeavor to finalize the transaction agreements by 31 March 2020," Tellurian said in a statement.

 

The statement came after Prime Minister Narendra Modi had a meeting with the CEOs of top oil companies based in the US. PM Modi who was also present during the signing of the MoU tweeted, “It is impossible to come to Houston and not talk energy! Had a wonderful interaction with leading energy sector CEOs. We discussed methods to harness opportunities in the energy sector. Also witnessed the signing of MoU between Tellurian and Petronet LNG."

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