Tellurian and Vitol sign 10-year LNG agreement for 3 mtpa
June 03 2021 - 6:58AM
Business Wire
Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it has
finalized a liquefied natural gas (LNG) sales and purchase
agreement (SPA) with Vitol Inc. (Vitol). The SPA is for three
million tonnes per annum (mtpa) on a free on board (FOB) basis at
Driftwood LNG for a ten-year period, indexed to a combination of
two indices: 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 ten 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.”
About Tellurian Inc.
Tellurian intends to create value for shareholders by building a
low-cost, global natural gas business, profitably delivering
natural gas to customers worldwide. Tellurian is developing a
portfolio of natural gas production, LNG marketing and trading, and
infrastructure that includes an ~ 27.6 mtpa LNG export facility and
an associated pipeline. Tellurian is based in Houston, Texas, and
its common stock is listed on the Nasdaq Capital Market under the
symbol “TELL”. For more information, please visit
www.tellurianinc.com. Follow us on Twitter at
twitter.com/TellurianLNG
About Vitol
Vitol is a commodity trader and the world’s largest independent
energy trader with $140 billion in revenues in 2020. Vitol trades
and distributes energy safely and responsibly around the world
using its logistical expertise and infrastructure network.
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. The words
“anticipate,” “assume,” “believe,” “budget,” “continue,”
“estimate,” “expect,” “forecast,” “initial,” “intend,” “may,”
“plan,” “potential,” “project,” “proposed,” “should,” “will,”
“would,” and similar expressions are intended to identify
forward-looking statements. Forward-looking statements herein
relate to, among other things, future contracts, demand, revenues,
prices, the benefits of Tellurian’s model and other aspects of
Tellurian’s business. These statements involve a number of known
and unknown risks, which may cause actual results to differ
materially from expectations expressed or implied in the
forward-looking statements. These risks include the matters
discussed in Item 1A of Part I of the Annual Report on Form 10-K of
Tellurian for the fiscal year ended December 31, 2020, and other
Tellurian filings with the Securities and Exchange Commission, all
of which are incorporated by reference herein. The effectiveness of
the agreement described in this press release is subject to, among
other things, a final investment decision with respect to the
Driftwood Project, and reaching a final investment decision will
require Tellurian to obtain significant amounts of additional
capital. Estimated revenue from the agreement is based on the
current JKM price (as quoted by S&P Platts) and the current TTF
price (as quoted on www.theice.com) for the full term of the
agreement; actual prices will vary. The agreement may be terminated
in certain circumstances prior to the expiration of the 10-year
term. The forward-looking statements in this press release speak as
of the date of this release. Although Tellurian may from time to
time voluntarily update its prior forward-looking statements, it
disclaims any commitment to do so except as required by securities
laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20210603005527/en/
Media: Joi Lecznar EVP Public and Government Affairs
Phone +1.832.962.4044 joi.lecznar@tellurianinc.com
Investors: Matt Phillips Vice President, Investor
Relations Phone +1.832.320.9331
matthew.phillips@tellurianinc.com
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