HOUSTON—Tellurian Inc. said June 3 it has finalized an LNG sales and purchase agreement (SPA) with Vitol Inc. The SPA is for three million tonnes per annum (mtpa) on a free on board (FOB) basis at Driftwood LNG for a 10-year period, indexed to a combination of two indexes: the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), each netted back for transportation charges. At today’s prices, the agreement is valued at approximately $12 billion in revenue over 10 years.
President and CEO Octávio Simões said, “Tellurian continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want. Vitol expressed interest in the development of Driftwood early on, and it is fulfilling to finalize this agreement with the world’s largest independent trader of energy. As the world electrifies and our population grows, the demand for reliable, low-cost energy will continue to increase. LNG provides a stable source of fuel at an attractive price, and Tellurian’s integrated model is positioned perfectly to offer volumes on JKM, TTF or blended price basis.”
Executive Vice President LNG Marketing & Trading Tarek Souki added, “Tellurian has made exceptional progress on our intended first phase capacity sales by securing this second SPA with another respected global energy trading business. The two recent agreements represent an aggregate of $24 billion in estimated revenue; we will continue to be deliberate and selective in choosing our additional customers.”
Pablo Galante Escobar, global head of LNG and European Gas & Power at Vitol said: “Vitol is excited to conclude this agreement with Tellurian. Our long-term commitment and investment grade rating will help Tellurian as they continue their path to financial close.”
Ben Marshall, CEO of Vitol Inc. added: “Vitol’s business continues to grow and evolve in the Americas and around the world. This agreement will make Vitol one of North America’s largest exporters of natural gas, providing our customers with cost effective and cleaner fuel solutions.”
Recommended Reading
Amazon, Dominion Energy Form Small Modular Reactor Pact
2024-10-17 - Dominion Energy and Amazon’s agreement to advance nuclear development was one of several moves made by Big Tech lately to advance lower carbon energy technologies.
Belcher: The Growing Nexus of Nuclear, Oil and Gas
2024-11-07 - Nuclear has a capacity factor of 92.5%, the highest of any source of electricity, not to mention near-zero greenhouse gas emissions.
Kissler: Is a Nuclear Power Revival on the Horizon?
2024-11-11 - With Wall Street and Congress on board, projects may be on the verge of charging forward.
NextEra Ponders Nuclear Plant Restart as Backlog Climbs
2024-10-24 - NextEra Energy’s CEO is considering restarting the Duane Arnold nuclear plant as electricity needs, particularly from data centers, are growing.
WoodMac: $3.5 Trillion Needed Annually to Hit Net Zero Targets
2024-10-29 - Higher demand for oil, gas and coal will delay peak emissions past 2030 and push the world beyond Wood Mackenzie’s base transition case and closer to a 3 C pathway, the consultancy said in a new report.