Total invests further in Tellurian’s Driftwood LNG project

Image courtesy of Tellurian

French energy major Total has decided to make a further investment in the Driftwood LNG project led by US LNG export project developer Tellurian.

Total said on Wednesday that it signed a series of agreements set to strengthen the partnership between the two companies to develop the Driftwood LNG project located in Louisiana, USA.

The deals include a heads of agreement upon which Total will invest in Driftwood Holdings and will offtake 2.5 Million tons per annum (mtpa) of LNG.

More precisely, Total will make a $500 million equity investment in the Driftwood LNG and purchase 1 mtpa of LNG from the proposed project.

Tellurian and Total will also enter into a sales and purchase agreement for a further 1.5 mtpa of LNG from Driftwood LNG. The agreement will be for the purchase of free on board LNG for a minimum term of 15 years, at a price based on the Platts Japan Korea Marker.

Total added that it would purchase around 20 million shares of Tellurian common stock for an amount of $200 million.

Patrick Pouyanné, chairman and CEO of Total, said: “These agreements increase our commitment to Driftwood LNG, a highly cost-competitive project that benefits from the low gas production costs and prices in the US.

As a strategic partner of Tellurian, we are confident to further invest in the company and become an investor and a customer of Driftwood LNG.

As for Driftwood LNG, it is an integrated LNG project that includes building gas pipelines from gas producing areas in Texas and a low-cost modular concept liquefaction plant with a capacity of 16.6 Mtpa and a possibility of increase to 27.6 Mtpa.

Total is a shareholder of Tellurian since 2017 after the group acquired approximately 46 million shares of Tellurian for an amount of $207 million.

It is worth reminding that Tellurian said last month that it would reach a final investment decision on Driftwood LNG in the first half of 2019.

Share this article

Follow LNG World News


<< Sep 2019 >>
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

Offshore Energy Exhibition and Conference 2019

The three-day event includes an exhibition where an expected 600+ supply chain companies will showcase their products and services.

read more >

LNGgc London

LNGgc is a fantastic way of raising attendees’ company profile within this market and creating greater awareness of their brand…

read more >

5th CWC China LNG & Gas International Summit & Exhibition

5th CWC China LNG & Gas International Summit & Exhibition will return 16 – 17 October 2019, bringing together the key players…

read more >