Vinod Kumar Mishra, the acting CEO of India’s gas importer Petronet LNG, has announced that the company’s plan to invest in Tellurian’s Driftwood LNG project is dead. The global LNG industry closely watched the Petronet-Tellurian deal because it acted as an indicator of whether proposed LNG projects in the US could attract sufficient financial commitments to start construction. Following Petronet’s withdrawal, Total is Tellurian’s only customer. The French energy company plans to invest $500 million in the project and purchase 2.5 million tons/year of LNG from the terminal once it is operational.
Just hours after Petronet’s announcement, Tellurian’s Chairman Charif Souki said that the company is in talks with new investors from Asia who are interested in buying 12 million tons/year of LNG from the terminal. Souki noted that the deal would be finalized in next year’s first half. However, he did not identify the Asian investors. He also stated that the construction at Driftwood is expected to start during the summer.
