American natural gas company, Tellurian has signed a ten-year liquedfied natural gas (LNG) agreement with Gunvor Singapore Pte Ltd (Gunvor).
The agreement itself is a sales purchase agreement for three million tonnes per annum (mtpa) for a ten-year period.
President and CEO, Octávio Simões, said, “Tellurian intends to market up to 10 mtpa of LNG in our first phase on a JKM, TTF or blended price basis, as our integrated model provides the flexibility to offer this valuable product.”
“We welcome Gunvor, the largest independent global trader of LNG volumes, to Driftwood and look forward to providing a clear fuel to meet growing energy needs and enable energy access.”
Executive Vice President of LNG Marketing & Trading, Tarek Souki, added, “Our business model creates significant value for Tellurian. At today’s LNG prices, this agreement represents the equivalent of approximately $12bn in revenue over the ten-year term of the agreement.”
The LNG is set to be delivered free on board (FOB) from Tellurian’s Driftwood LNG, a 27.6 mtpa liquefaction facility proposed near Lake Charles, Louisiana, in the United States Gulf Coast.