Driftwood LNG deals signed by Tellurian with Gunvor and Vitol

The commodities traders, Gunvor Singapore and Vitol have signed 10-year LNG sales and purchase agreements with US natural gas company Tellurian. 

Gunvor will buy 3 million tpa of LNG from Tellurian’s Driftwood LNG project in Louisiana, US, on a free on board basis. Both agreements are currently valued at around $12 billion in revenue over the 10-year period.

Driftwood LNG is currently under development, and when fully complete, it will have three storage tanks each with a capacity of 235,000 m3, and three marine berths.

Octávio Simões, Tellurian president and CEO, said: “Tellurian hopes to market up to 10 million tpa of LNG from the first phase of Driftwood LNG, and welcomed Gunvor Singapore to the project.

“Tellurian continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want. As the world electrifies and our population grows, the demand for reliable, low-cost energy will continue to increase. LNG provides a stable source of fuel at an attractive price, and Tellurian’s integrated model is positioned perfectly to offer volumes on JKM, TTF or blended price basis.”

Building was delayed in 2020 after the company failed to gain enough interest from potential partners to secure financing for construction. Nevertheless, the company said it expected to sign sufficient deals to begin construction in 2021.

For more information visit www.tellurianinc.com

15th June 2021