According to Chief Executive Officer Tellg Meg Gentle Petronet will spend $ 2.5 billion on an 18% equity stake in the $ 28 billion Driftwood LNG terminal – the largest external holding so far in the project – and negotiate the acquisition of 5 million tons of gas per year. The remainder of the total will come from debt.
The company’s stock rose as much as 11% in pre-market trading on Monday.
The memorandum of understanding was announced on Saturday. The companies plan to terminate the agreement by March 31, at which time Tellurian hopes to have signed partners to enable it to continue with the project.
India’s Petronet LNG Ltd signed a $ 7.5 billion deal to acquire Louisiana’s proposed liquefied natural gas terminal in what could potentially be one of the largest foreign investments in the US to ship gas to the United States clay abroad.
Gentle said in a telephone interview that “We will sign the document sometime in the first quarter and have funding ready to close at the same time, and then begin construction.”
“India is one of the fastest growing markets for LNG and should soon become the second largest LNG importer.”
The deal, signed in Houston in the presence of Indian Prime Minister Narendra Modi, underscores a record year for the LNG industry, with export projects worth tens of billions of dollars given the green light.
Lydia Powell, who runs the Resource Management Center at the New Delhi-based Observer Research Foundation, said that “This agreement will further help diversify India’s energy supply” she also added that “the US wants to shift supplies to the Middle East and India is a huge market. ”
Petronet’s investment will be the largest by a foreign entity with what Sempra Energy expects to complete in Texas with Saudi Aramco./Investing.com