Houston-based Tellurian Inc. has struck its first big deal to sell liquefied natural gas from a proposed $15.2 billion export terminal in Louisiana.
Tellurian said Thursday its subsidiary has entered a memorandum of understanding with Vitol Inc. to supply 1.5 million tons per year of liquefied gas from its proposed Driftwood LNG export terminal south of Lake Charles, Louisiana.
A spokeswoman said the two companies have agreed in principle on the 15-year contract in l but are still ironing out the details of the deal.
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"Tellurian is proud to work with Vitol, who has long been known for its innovation and creativity in the energy commodity markets, to lead LNG market transformation with a long-term LNG sale at the market index," said Tellurian CEO Meg Gentle in a statement.
In addition to buying liquefied natural gas through a contract, Vitol also is considering becoming an equity partner in the Tellurian sister company, called Driftwood Holdings.
Under the umbrella of Driftwood Holdings, Tellurian and its equity partners are developing the 27.6-million ton terminal as part of an integrated network of upstream and pipeline operations.
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A company spokesperson said Tellurian is an active talks with 35 other parties to become equity partners in the holding company.
If all goes according to plan, Tellurian would complete its permitting and begin construction of the export terminal in the first half of 2019. The terminal would begin operating by 2023. It`s one of several LNG export projects popping up along the Gulf Coast as companies look to take advantage of cheap supplies of natural gas.
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