Driftwood terminates $700M deal with France’s TotalEnergies


Driftwood LNG developer Tellurian has terminated a $700 million stock and LNG purchase agreement with France’s TotalEnergies SE, Reuters reports.

Tellurian initially sought partners like TotalEnergies to invest in its Driftwood project, which will include a liquefaction plant, pipelines and natural gas production. The partners were to receive LNG from the project.

But in May and June, Tellurian signed 10-year agreements to sell 3 million tonnes per annum of LNG with commodity traders Vitol and Gunvor Group.

“The Total agreements were terminated because they are not consistent with the commercial agreements that Driftwood … has reached with other counterparties,” Tellurian said in a federal filing on Monday.

One of the conditions of Tellurian’s deal with TotalEnergies was that it make a final investment decision within 24 months of a July 10, 2019, agreement. No such decision has been made.

Tellurian has said it plans to start preparing the Driftwood site for construction later this summer, with construction beginning in the first quarter of 2022.

Reuters has the full story.