Tellurian signs Driftwood LNG sale deal with Shell

https://www.tankstoragemag.com/2021/07/30/tellurian-signs-driftwood-lng-sale-deal-with-shell/

Tellurian (Driftwood LNG near Lake Charles) - Shell, 3 mtpa, start in Jul 2024, since Driftwood will start in Jul 2024. 10 years, FOB. 

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US natural gas company Tellurian has signed ten-year sale and purchase agreements (SPAs) with Shell NA LNG for LNG from its Driftwood LNG project.

Shell will buy 3 million tpa of LNG on a free on board (FOB) basis, with the price linked to combination of two indices – the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF) – netted back for transport charges.

The new SPAs with Shell follow the SPAs signed with commodities traders Gunvor Singapore and Vitol in June 2021. Tellurian now has SPAs totalling 9 million tpa for Driftwood LNG.

Driftwood LNG is currently under development, and when fully complete, will have a capacity of 27.6m t/y with up to 20 trains of 1.38m t/y each. It will have three storage tanks each with a capacity of 235,000 m3, and three marine berths. Construction was delayed in 2020 after the company failed to gain enough interest from potential partners to secure financing for construction. However, Tellurian president and CEO Octávio Simões says that the company has now secured enough sales to support the launching of the first two plants. Tellurian will now focus on financing, with a view to giving contractor Bechtel notice to proceed early in 2022.

‘Shell manages one of the largest and most diverse portfolios of LNG in the world, and is leading the industry in delivering CO2e neutral LNG cargoes. Owing to Driftwood’s integrated project, our ability to accurately measure well to loading arm emissions and reduce emissions where operationally possible, further enables Shell’s CO2e neutral LNG offering,’ Simões says.

Steve Hill, EVP Shell Energy adds: ‘LNG demand is expected to nearly double by 2040. This deal secures additional competitive volumes for our portfolio by the mid-2020s, enabling us to continue providing diverse and flexible LNG supply to our customers. We look forward to working with Tellurian.’

https://mfame.guru/tellurian-and-shell-sign-agreements-for-3-mt-lng-per-annum/