LNG sales from Driftwood’s first two plants complete
Tellurian and Shell sign agreements for 3 mtpa. (Credit: Adam Radosavljevic from Pixabay)
Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it has finalized liquefied natural gas (LNG) sale and purchase agreements (SPAs) with Shell NA LNG. 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.
President and CEO Octávio Simões said, “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.”
Steve Hill, EVP Shell Energy stated, “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.”
Simões added, “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.”
Source: Company Press Release