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    Indian Petronet Mulling Stake in US LNG Plant

Summary

Work on the project is still expected to start by June this year.

by: William Powell

Posted in:

Africa

Indian Petronet Mulling Stake in US LNG Plant

India's biggest LNG importer, Petronet LNG, is considering taking a stake in Tellurian's Driftwood LNG project, the US entity said February 14. CEO Meg Gentle said her company supported "Petronet’s vision to be a key energy provider to India and look forward to delivering clean, low-cost and reliable natural gas from Driftwood LNG.”

Driftwood LNG is a proposed 27.6mn mt/yr liquefaction export facility that will be near Lake Charles, Louisiana on the US Gulf Coast, and Driftwood Pipeline is the 96-mile proposed pipeline connecting to the facility. Driftwood LNG and Driftwood Pipeline have received a final environmental impact statement from US regulatory authorities and Tellurian expects to make a final investment decision and begin construction in the first half of 2019.

Tellurian offers no offake but equity stakes where the buyer takes a stake in the whole value chain, rather as if each tranche was its own facility. One selling point is the pipeline access to very low-cost gas reserves in the Permian, where oil production forces gas prices into negative territory on occasion. Many other US liquefaction schemes, such as Cheniere's Sabine Pass, which was devised by many of the present Tellurian top executives including Gentle, charge the offtaker a fee based on the higher Henry Hub price.