Petronet signs MoU with US natural gas firm Tellurian in PM Modi's presence

US natural gas company Tellurian Inc. and Petronet LNG Limited (PLL) of India have signed an 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 two companies announced on Saturday.

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

The announcement came after Prime Minister Narendra Modi had a meeting with the CEOs of top oil companies based in the US here on Saturday.

A statement from Tellurian said the Memorandum of Understanding (MoU) was signed in Modi's presence.

"Petronet, India's largest LNG importer, will be able to deliver clean, low-cost and reliable natural gas to India from Driftwood. Increasing natural gas use will enable India to fuel its impressive economic growth to achieve Prime Minister Modi's goal of a USD 5 trillion economy, while contributing to a cleaner environment.

"It is an honour to sign the MoU with Petronet in the presence of Prime Minister Narendra Modi. At Tellurian, we look forward to a long and prosperous partnership with Petronet in the Driftwood project," Tellurian's president and CEO Meg Gentle said.

The Driftwood project includes natural gas production, gathering, processing and transportation facilities, along with Driftwood LNG, a proposed 27.6 mtpa liquefaction export facility that will be located near Lake Charles, Louisiana on the US Gulf Coast.

In April, the US Federal Energy Regulatory Commission (FERC) issued the order granting authorisation for Driftwood LNG and the 96-mile Driftwood Pipeline, which will inter-connect the LNG terminal to the US natural gas market.