Tellurian Inc. has extended its memorandum of understanding (MOU) with Petronet LNG Ltd. wherein Petronet and its affiliates intend to negotiate the purchase of up to 5 million tonnes/year of LNG from the Driftwood project, concurrent with an equity investment in Driftwood Holdings.
The MOU signed in September 2019 previously contemplated that transaction agreements would be finalized by Mar. 31 (OGJ Online, Sept. 23, 2019). The timing has been extended to May 31 to support Petronet’s consultative review process.
Petronet looks to spend $2.5 billion for an 18% equity stake in the project. A $5-billion debt commitment comprises the remainder, said Tellurian Chief Executive Officer Meg Gentle in September 2019.
The Driftwood LNG project consists of two main components: the construction and operation of the LNG facility, which includes five LNG plant facilities to liquefy natural gas, three tanks to store the LNG, LNG carrier loading and berthing facilities, and other appurtenant facilities at a site near Carlyss, Calcasieu Parish, La.; and the construction and operation of about 96 miles of pipeline, three compressor stations, and 15 meter stations.