Driftwood LNG terminal is a proposed 27.6mtpa liquefaction export facility to be located near Lake Charles, Louisiana on the US Gulf Coast
US-based natural gas company Tellurian has announced the signing of definitive agreements with Total Delaware and Total Gas & Power North America, subsidiaries of Total, for Driftwood liquefied natural gas (LNG) terminal.
Under the terms of agreement, Total Gas & Power would buy one million tonnes per annum (mtpa) of LNG from the Driftwood LNG terminal (Driftwood) and Total would invest $500m (£398m) in Driftwood Holdings.
Tellurian and Total Gas & Power have also signed a definitive sales and purchase agreement (SPA) for an additional 1.5mtpa of LNG from Tellurian’s LNG offtake volumes from Driftwood terminal, at a price based on the Platts Japan Korea Marker.
The definitive agreements are subject to certain closing conditions, including the final investment decision (FID) on construction of Driftwood facility.
Driftwood LNG terminal
The proposed Driftwood LNG terminal is a ~27.6mtpa liquefaction export facility planned to be located near Lake Charles, Louisiana on the US Gulf Coast.
Tellurian president and CEO Meg Gentle said: “The agreements we have executed with Total confirm the business model for the Driftwood project, establishing it as an LNG joint venture partnership with an implied value of $13.8 billion. The Tellurian team thanks Total for their leadership and we look forward to beginning the largest privately funded U.S. infrastructure project.
“We intend to finalize the agreements with the remaining partners and make FID in 2019. At full capacity, Driftwood will be capable of exporting approximately 4 billion cubic feet per day of natural gas, providing solutions for the acute U.S. oversupply and delivering cleaner air to the world.”
In April 2019, Total signed a common stock purchase agreement with Tellurian to purchase shares of Tellurian common stock for approximately $200m (£159m), subject to the closing conditions, including the FID to construct Driftwood terminal.
Total is expected to invest approximately $907m (£724m) in the Tellurian portfolio at FID.