Tellurian making progress as global exporter of US shale LNG

By Luke Geiver | March 05, 2019

Two years into life as a public company, Tellurian is making major strides to becoming a global supplier of liquefied natural gas (LNG) sourced from U.S. shale fields. The company has gained investment from several parties, including Bechtel Corp. along with nearly $130 million from a public offering of common stock. In late 2018, Tellurian also signed a 15-year memorandum of understanding with Vitol Inc. for an offtake agreement of future LNG. The deal is based, in part, on the ability of Tellurian to complete its proposed LNG export facility and infrastructure project on the U.S. Gulf Coast. Earlier this month, Petronet LNG Limited INDIA also announced an MOU with Tellurian for investment in Tellurian’s LNG export facility. 

“Petronet is India’s largest LNG importer, operating 20 million tonnes per annum (mtpa) of receiving terminal capacity with an additional 2.5 mtpa of capacity under construction at its Dahej expansion and a further 5 mtpa proposed at Gangavaram. We support Petronet’s vision to be a key energy provider to India and look forward to delivering clean, low-cost and reliable natural gas from Driftwood LNG,” said Meg Gentle, CEO.   

The company has been able to secure permits from the Lousiana Department of Natural Resources and Department of Environmental Quality. A final environmental impact statement from the U.S. Federal Energy Regulatory Commission also means Tellurian has passed a major regulatory hurdle.

The FERC decision means Tellurian could begin constructing its Driftwood LNG export facility in 2019 and begin shipping product by 2023.

“The LNG business is evolving into a true commodity market, which includes LNG purchases and sales based on actual LNG prices rather than indexing to other energy products,” Gentle added, noting the importance of a deal with Vitol to price LNG.