Tellurian Signs Deal to Sell LNG from Louisiana Project to Shell
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Tellurian has finalized liquefied natural gas (LNG) sale and purchase agreements (SPAs) with Shell Energy. The SPAs are on a free on board (FOB) basis at Driftwood LNG for a combination of three million tonnes per annum (mtpa) for a ten-year period, 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 agreements mark the third deal that Tellurian has finalized in ten weeks, totaling nine mtpa and nearly all of the capacity of Driftwood LNG’s first two plants.
“Tellurian welcomes Shell to the Driftwood project. Shell manages one of the largest and most diverse portfolios of LNG in the world, and is leading the industry in delivering CO2e neutral LNG cargoes. Owing to Driftwood’s integrated project, our ability to accurately measure well to loading arm emissions and reduce emissions where operationally possible, further enables Shell’s CO2e neutral LNG offering,” said President and CEO Octávio Simões.
“LNG demand is expected to nearly double by 2040. This deal secures additional competitive volumes for our portfolio by the mid-2020s, enabling us to continue providing diverse and flexible LNG supply to our customers. We look forward to working with Tellurian,” said Steve Hill, EVP Shell Energy.
“With these SPAs, we have now completed the sales to support the launching of the first two plants. Tellurian will now focus on financing Driftwood, in order to give Bechtel notice to proceed with construction in early 2022,” added Simões.
About Tellurian
Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG marketing and trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas.
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