Driftwood deal with India’s Petronet delayed

(Courtesy Tellurian Inc.) An artist's rendering of the proposed Driftwood LNG

A final agreement by India’s Petronet LNG to buy up to 5 million tons per year year of LNG from the proposed Driftwood production and export terminal on the west bank of the Calcasieu River has been delayed.

In an announcement last week, Tellurian said it has extended its Memorandum of Understanding with Petronet to May 31 to allow additional time for Petronet’s consultative review process. The MOU was signed in September 2019 and originally anticipated that the agreement would be finalized by the end of March.

The deal was being watched by the energy industry as President Donald Trump visited with Indian Prime Minister Narendra Modi last week. Tellurian had a team in India during the president’s visit.

The negotiations involve not just the purchase of LNG but an equity investment in Driftwood Holdings as well. India’s demand for LNG has risen 27% year over year, and Modi plans $60 billion of investments in natural gas infrastructure for the company.

In a statement, Tellurian President and CEO Meg Gentle said the company is “very supportive of Petronet’s process to ensure their robust project review,” adding that “India is perfectly poised to benefit from strategic project agreements such as Petronet’s equity investment in Driftwood.”

Read the announcement.