Total Expands Tellurian Ties, Inks US LNG Supply Deal

摘要

Total is set to make a further investment in aspiring US LNG exporter Tellurian and buy long-term LNG from the latter’s Driftwood project in Louisiana, underlining the French major’s growing ambition to expand its supply portfolio. Total, which already holds a 19% stake in Tellurian, announced details on Wednesday of a heads of agreement through which it will make a $500 million equity investment in the 27.6 million ton per year Driftwood scheme. That will entitle Total to 1 million tons/yr of supply and a 3.6% stake in Driftwood. The duo also signed a sales and purchase agreement for a further 1.5 million tons/yr of LNG from Tellurian Marketing’s share of offtake for a minimum of 15 years sold on a free-on- board basis. The price will be linked to the Platts Japan Korea Marker (JKM) and the contract will be priced at a discount to the JKM index.