Tellurian and Shell Sign Agreements for 3 mtpa

Tellurian announced yesterday it has finalized LNG sale and purchase agreements with Shell. The agreements are on a free on-board basis at Driftwood LNG for a combination of three million tonnes per annum for a ten-year period. Driftwood LNG is Tellurian’s proposed 27.6 mtpa liquefaction facility to be located near Lake Charles, Louisiana. The agreements are indexed to a combination of two indices: the Japan Korea Marker and the Dutch Title Transfer Facility, each netted back for transportation charges.

This is the third deal the company has finalized in ten weeks, totaling nine mtpa and nearly all of the capacity of Driftwood LNG’s first two plants. In May of this year Tellurian and Gunvor signed a 10-year agreement for 3 mtpa.  In June Tellurian and Vitol signed a 10-year agreement for 3 mtpa.

President and CEO Octávio Simões said, “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.”