Petronet LNG signs USD 2.5 bn deal to take stake in US LNG plant

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Petronet LNG Ltd, India's biggest liquefied natural gas importer, has signed a preliminary deal to buy a stake in Tellurian Inc's proposed Driftwood project in Louisiana and import 5 million tonnes a year of LNG.

The deal is worth about USD 2.5 billion, sources privy to the development said.

"Tellurian Inc. and Petronet LNG Ltd announced (September 21) that the two companies have signed a Memorandum of Understanding (MOU) wherein Petronet and its affiliates intend to negotiate the purchase of up to five million tonnes per annum (5 mtpa) of liquefied natural gas (LNG) from Driftwood, concurrent with its equity investment, which remains subject to further due diligence and approval of its board of directors," the US firm said in a statement.

Tellurian and Petronet will endeavour to finalise the transaction agreements by March 31 2020, it said.

The firm's President and CEO Meg Gentle said, "Petronet, India's largest LNG importer, will be able to deliver clean, low-cost, and reliable natural gas to India from Driftwood."