Tellurian and Gunvor sign 10-year LNG agreement

Tellurian and Gunvor announced today a sales and purchase agreement for three million tonnes of LNG per annum for a ten year period. The agreement is indexed to a combination of two indices; the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF) netted back for transportation charges. The LNG would be delivered free on board from Tellurian’s planned Driftwood LNG export facility. Driftwood LNG is Tellurian’s proposed 27.6 mtpa liquefaction facility to be located near Lake Charles, Louisiana.

President and CEO ­­Octávio Simões said, “Tellurian intends to market up to 10 mtpa of LNG in our first phase on a JKM, TTF or blended price basis, as our integrated model provides the flexibility to offer this valuable product. We welcome Gunvor, the largest independent global trader of LNG volumes, to Driftwood and look forward to providing a cleaner fuel to meet growing global energy needs and enable energy access.”

Tellurian noted the agreement represents the equivalent of approximately $12 billion in revenue over 10 years. The Driftwood LNG terminal and associated pipeline have received all the necessary permits and licenses to begin construction.