Tellurian and Shell Sign Agreements for 3 mtpa
July 29 2021 - 1:23PM
Business Wire
LNG sales from Driftwood’s first two plants
complete
Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced today it has
finalized liquefied natural gas (LNG) sale and purchase agreements
(SPAs) with Shell NA LNG. The SPAs are on a free on board (FOB)
basis at Driftwood LNG for a combination of three million tonnes
per annum (mtpa) 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.
The agreements mark the third deal that Tellurian has finalized
in ten weeks, totaling nine mtpa and nearly all of the capacity of
Driftwood LNG’s first two plants.
President and CEO Octávio Simões said, “Tellurian welcomes Shell
to the Driftwood project. 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.”
Steve Hill, EVP Shell Energy stated, “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.”
Simões added, “With these SPAs, we have now completed the sales
to support the launching of the first two plants. Tellurian will
now focus on financing Driftwood, in order to give Bechtel notice
to proceed with construction in early 2022.”
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
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 demand and supply affecting
LNG and general energy markets, carbon neutrality, future
contracts, the capacity, timing and other aspects of the Driftwood
project, and the construction and financing of the project. 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 agreements 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. The agreements may be
terminated in certain circumstances prior to the expiration of
their 10-year terms. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210729005969/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
Tellurian (AMEX:TELL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Tellurian (AMEX:TELL)
Historical Stock Chart
From Sep 2023 to Sep 2024