Tellurian Inc. and Petronet LNG Ltd. INDIA announced on Sept. 21 that the two companies have signed a memorandum of understanding (MOU) wherein Petronet and its affiliates intend to negotiate the purchase of up to five million tonnes per annum (5 mtpa) of LNG from Driftwood, concurrent with its equity investment, which remains subject to further due diligence and approval of its board of directors.

Citing unnamed sources, Reuters reported Sept. 20 that Petronet would sign an MOU with Tellurian to invest $2.5 billion for the rights. Tellurian and Petronet will aim to finalize the transaction agreements by March 31, 2020, according to the company press release.

“Petronet, India’s largest LNG importer, will be able to deliver clean, low-cost, and reliable natural gas to India from Driftwood,” said Tellurian President and CEO Meg Gentle. “Increasing natural gas use will enable India to fuel its impressive economic growth to achieve Prime Minister Modi’s goal of a $5 trillion economy while contributing to a cleaner environment.

“It is an honor to sign the MOU with Petronet in the presence of H.E. Prime Minister Narendra Modi. At Tellurian, we look forward to a long and prosperous partnership with Petronet in the Driftwood project.”

The Driftwood project includes natural gas production, gathering, processing, and transportation facilities, along with Driftwood LNG, a proposed roughly 27.6 mtpa liquefaction export facility that will be located near Lake Charles, La., on the U.S. Gulf Coast. In April, the U.S. Federal Energy Regulatory Commission (FERC) issued the order granting authorization for Driftwood LNG and the 96-mile Driftwood Pipeline, which will inter-connect the LNG terminal to the U.S. natural gas market.