Total and Tellurian Finalize Driftwood Equity Investment and LNG Purchase Agreements
Tellurian Inc. (Tellurian) announced that it has entered into definitive agreements with Total Delaware, Inc. (Total) and Total Gas & Power North America, Inc. (Total Gas & Power), subsidiaries of Total S.A., for Total Gas & Power to purchase one million tonnes per annum (mtpa) of LNG from the proposed Driftwood LNG terminal (Driftwood) in Calcasieu Parish, La., and for Total to invest $500 million in Driftwood Holdings LP. According to the press release, Tellurian and Total Gas & Power have also entered into a definitive sales and purchase agreement (SPA) for an additional 1.5 mtpa of LNG from Tellurian’s LNG offtake volumes from Driftwood. The SPA is for the purchase of LNG free on board at a price based on the Platts Japan Korea Marker. The definitive agreements are subject to certain closing conditions, including the final investment decision to construct Driftwood.