- On the sidelines of Prime Minister Narendra Modi’s meeting with energy sector CEOs in USA, Tellurian and India’s Petronet LNG Signed a Memorandum of Understanding to negotiate the purchase of up to five million tonnes per annum of liquefied natural gas (LNG) from Driftwood, concurrent with its equity investment.
- The two companies are likely to finalize the transaction agreements by 31st March 2020.
- Petronet LNG will invest $2.5 billion in US company Tellurian Inc. to access five million tonnes per annum of liquefied natural gas (LNG) .
- India has been sourcing liquified natural gas and oil from the US, with Indian firms investing $4 billion in US shale gas assets.
- Tellurian’ 27.6 mtpa liquefaction export facility is to be located near Lake Charles, Louisiana on the US Gulf Coast. Gas accounts for around 6.2% of India’s primary energy mix as compared to a global average of 24%.
- The government plans to increase this to 15% by 2030. India’s gas demand is expected to be driven by the fertilizer, power, city gas distribution and steel sectors.
