According to two sources with knowledge of the matter, Petronet will invest in Tellurian’s proposed US$27.5 billion Driftwood LNG export project over a period of five years. The deal will give Petronet an equity stake in the project and rights for up to 5 million tpy of LNG.
According to Reuters, one of the sources said that supplies will commence in 2024, and will gradually increase to 5 million tpy in 2028. The source went on to say that the delivered price of gas to India would be lower than US$6/million Btu. This will reportedly work out at approximately 30% cheaper than the country’s current long-term contracts with Qatar.
This latest development follows a preliminary non-binding deal that was signed in September 2019, when Prime Minister Narendra Modi visited the US.