Tellurian stock soars after India’s Petronet renews investment deal

Shares of U.S. liquefied natural gas (LNG) developer Tellurian Inc (TELL.O) soared after Indian sources familiar with the matter said India’s top gas importer, Petronet LNG (PLNG.NS), renewed a deal to give the parties more time to finalize an investment in Tellurian’s Driftwood export project in Louisiana.

Shares of Tellurian, which did not comment on the Petronet deal, were up as high as 53% in midday trade.

Petronet and Tellurian now have until the end of December to finalize the deal, sources said. Developers have delayed numerous North American LNG projects this year due to a sharp downturn in global gas prices. LNG supply increased by a record amount in 2019, and the coronavirus has sapped overall fuel demand.

The companies signed a non-binding agreement in September 2019, in which Petronet agreed to negotiate the annual purchase of up to 5 million tonnes of LNG, over the lifespan of the project, concurrent with an equity investment in Driftwood.

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