On Tuesday, shares of US liquefied natural gas (LNG) developer Tellurian Inc. went up following a statement from a source that mentioned that India’s Petronet LNG had renewed an investment deal for Tellurian’s Driftwood export project in Louisiana, US.
Tellurian’s stocks soared as high as 53% in midday trade.
The USD27.5 billion Driftwood project is aimed to produce 27.6 mtpa of LNG.
Previously in September 2019, the two companies signed a non-binding agreement which stated that Petronet would negotiate the annual buyings of up to 5 mt of LNG over the lifespan of the project, synchronous with an equity investment in Driftwood.
The deal lapsed on May 31 and was just renewed last week before the meeting between Indian oil minister Dharmendra Pradhan and US Energy Secretary Dan Brouillette. Tellurian and Petronet have until the end of this year to finalize the deal, according to the sources.
India is enhancing the consumption of cleaner fuel and is now expanding its pipeline network. PM Narendra Modi has determined to increase the share of gas in India’s energy mix to 15% by 2030 from the current 6.2%.
