With global Liquefied Natural Gas (LNG) spot cargo falling to record levels on the back of a supply glut and demand contraction, Petronet LNG Ltd, India’s largest importer of natural gas is looking at investment opportunities across the globe, including Tellurian’s Driftwood LNG terminal, for sourcing LNG for India at the cheapest possible price, company executives told analysts.
“Tellurian is one of the parties, we are looking at opportunities across the globe. It is not as if only Tellurian is there. We are looking at procuring LNG for India at a very reasonable price. This is our objective,” an executive said in an interaction post the third quarter financial results. “If you look at the spot market, LNG is available between $3-4 per mmbtu. So, we are trying to get LNG at the cheapest price available in the market. Whosoever is there across the globe we are looking forward to the opportunity, it may be anywhere, and Tellurian is one of them,” he said.
US’ Tellurian and India’s Petronet had signed a non-binding agreement last year in Houston in the presence of Prime Minister Narendra Modi. According to that pact, Petronet is expected to invest $2.5 billion in Tellurian’s proposed Driftwood LNG export terminal, in exchange for the rights to 5 million metric tonnes of LNG per year over 40 years.
Petronet executives told analysts the non-binding agreement with Tellurion expires on 31 March and while there is progress, the company is not in a position to reveal further details.