Tellurian Nets Another Multibillion-Dollar LNG Sale
Energy trader Vitol will take 3 mtpa over a 10-year period.
Tellurian has finalized a liquefied natural gas (LNG) sales-and-purchase agreement with Vitol for 3 mtpa on a free on board basis at Driftwood LNG for a 10-year period. The deal follows a similar 10-year, 3-mtpa agreement Tellurian entered with commodity trader Gunvor Group announced about 1 week ago.
Each deal is worth about $12 billion in revenue over the contract period. Driftwood LNG is a 27.6-mtpa project in Louisiana slated to begin exports during the first quarter of 2022.
Previously, Tellurian’s only firm commercial deal tied to Driftwood LNG had been a 2019 agreement with France’s Total.
“Tellurian continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want,” said Octávio Simõe, president and chief executive of Tellurian. “Vitol expressed interest in the development of Driftwood early on, and it is fulfilling to finalize this agreement with the world’s largest independent trader of energy.”
Planned for the west bank of the Calcasieu River, south of Lake Charles, Louisiana, the Driftwood LNG project will be developed in phases, with the initial phase to produce about 16.5 mtpa of LNG.
Driftwood has a $15.5-billion lump-sum turnkey engineering, procurement, and construction contract with Bechtel that guarantees cost, performance, and schedule.
According to the company, it has received the most significant permits required for construction and operation, has progressed to about 30% engineering complete having invested $150 million, and has completed the purchase and lease of approximately 1,000 acres of real estate ensuring a construction site with ample laydown area for equipment and deepwater access for shipping.