Tellurian and Vitol sign MOU for 15-year LNG sale

Tellurian Inc. (Tellurian) has announced that its subsidiary, Tellurian Trading UK Ltd. (Tellurian Trading), has entered into a Memorandum of Understanding (MOU) with Vitol Inc. (Vitol) to supply 1.5 million tonnes per annum of LNG from Tellurian Trading’s LNG offtake capacity at the proposed Driftwood LNG export terminal on Calcasieu River in Calcasieu Parish, La. The transaction price is based on the Platts Japan Korea Marker (JKM) and is for a minimum term of 15 years. Under the MOU, Tellurian and Vitol have agreed to negotiate a LNG Sale and Purchase Agreement (SPA) under which Vitol will purchase LNG free on board (FOB). The SPA will contain certain conditions precedent, including Tellurian’s receipt of regulatory approvals and a final investment decision to construct the Driftwood LNG export terminal. In addition, Vitol is evaluating a potential equity investment in the Driftwood Holdings partnership.

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