India's Petronet LNG and US LNG developer Tellurian signed an MoU in the proposed Driftwood project in Louisiana, on Saturday. Under the MoU, Petronet agreed will have rights of up to 5 million tons/year of LNG over the lifespan of the project, by investing $2.5 billion.
Previously, both companies signed an initial agreement in February that did not specify the investment and the offtake volumes. The deal was part of Prime Minister Narendra Modi's trade discussion with US President Donald Trump.
India provides opportunities for US LNG exports given the country's growing demand for the commodity. A private analyst estimated India's gas consumption to exceed 40 million tons/year by 2024. India is also building LNG import terminals and expanding its gas pipeline network to endorse the use of cleaner fuel.
