Tellurian Inc. has finalized a 10-year, 3-million tonne/year (tpy) LNG sales agreement with Vitol Inc. Pricing will be free on board from Tellurian’s proposed 27.6-million tpy Driftwood LNG plant near Lake Charles, La., indexed to a combination of two indices: the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), each netted back for transportation charges.
The agreement follows a similar deal reached last week between Tellurian and Gunvor Singapore Pte. Ltd., also for 3 million tpy over 10 years (OGJ Online, May 27, 2021).
Telllurian estimates that at today’s prices, the agreement will generate $12 billion in revenue. It hopes to reach final investment decision by first-quarter 2022.