Tellurian Loses Another LNG Purchase Agreement

In May 2021, Tellurian signed a 10-year, 3-MTPA liquefied natural gas (LNG) deal with Gunvor Singapore Pte Ltd. According to a regulatory filing this week, the deal was canceled as both parties failed to reach commercial terms for the agreement. The news follows cancellations from Shell and Vitol, which reached similar agreements in 2021 but then canceled them in 2022.

Despite the setback, Tellurian remains confident that its 27.6-MTPA Driftwood LNG project remains on track. “Bechtel is progressing very well on Driftwood LNG construction, having driven more than 9000 piles and poured more than 10,000 scf of concrete for plant one and the storage tanks, and having recently prepared plant two’s site for piling work,” said Tellurian President and Chief Executive Officer Octávio Simões in the company’s Q2 2023 earnings release. “We also hired former investment banker Simon Oxley as chief financial officer and with his extensive experience and leadership, we are significantly enhancing our project financing efforts.”