Petronet-Tellurian deal: Is LNG risky for India? Explained in 5 charts

Based on industry estimates, this LNG could cost upwards of $5 per million metric British thermal unit (mmBtu).

Prime Minster Narendra Modi’s recent US visit saw Petronet LNG Ltd (PLL), a joint sector company, signing a memorandum of understanding with the US-based Tellurian for import of liquefied natural gas (LNG). However, there are concerns over the LNG demand growth in India because of price sensitivity of the market. 

Bullish on the US LNG 

Under a non-binding memorandum of understanding signed on September 21, PLL and its affiliates have the option to buy 5 million tonne per annum (mtpa) LNG from Tellurian’s Driftwood project on the banks of Calcasieu river in Louisiana. The deal comes with the option of making an