US LNG project developer Tellurian has secured an LNG supply deal with the Singaporean unit of the Swiss commodity trader Gunvor.
Under the agreement with Gunvor Singapore, Tellurian will supply three million tonnes per annum (mtpa) for a ten-year period, 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 (FOB) from Tellurian’s Driftwood LNG, a 27.6 mtpa liquefaction facility proposed near Lake Charles, Louisiana in the United States Gulf Coast.
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.”
Commenting further on the agreement executive vice president LNG Marketing & Trading Tarek Souki added, “Our business model creates significant value for Tellurian; at today’s LNG prices, this agreement represents the equivalent of approximately $12 billion in revenue over the 10-year term of the agreement.”
Earlier this year Tellurian co-founder Charif Souki said that the start of construction on the Driftwood LNG project is targeted for this summer.
The first phase of Driftwood is expected for operation in 2025 and will produce about 16.5 million tonnes per annum of LNG, equivalent to about 2.2 billion cubic feet per day of natural gas.
At full buildout the $16.8 billion project will be capable of producing 27.6 million of LNG per year.