US natural gas company Tellurian Inc and Petronet LNG Limited (PLL) of India have signed an MoU, under which PLL and its affiliates intend to import up to five million tonnes per annum (5 mtpa) of liquefied natural gas (LNG) from America, the two companies announced on Saturday, 21 September, news agency PTI reported.
Tellurian and Petronet will endeavour to finalise the transaction agreements by 31 March, 2020, they added.
The announcement came after Prime Minister Narendra Modi had a meeting with the CEOs of top oil companies based in Houston in US on Saturday.
A statement from Tellurian said the Memorandum of Understanding (MoU) was signed in Modi's presence, according to PTI.
"Petronet, India's largest LNG importer, will be able to deliver clean, low-cost and reliable natural gas to India from Driftwood. Increasing natural gas use will enable India to fuel its impressive economic growth to achieve Prime Minister Modi's goal of a $5 trillion economy, while contributing to a cleaner environment.
"It is an honour to sign the MoU with Petronet in the presence of Prime Minister Narendra Modi. At Tellurian, we look forward to a long and prosperous partnership with Petronet in the Driftwood project," Tellurian's president and CEO Meg Gentle said.
The Driftwood project includes natural gas production, gathering, processing and transportation facilities, along with Driftwood LNG, a proposed 27.6 mtpa liquefaction export facility that will be located near Lake Charles, Louisiana on the US Gulf Coast, PTI reported.
In April, the US Federal Energy Regulatory Commission (FERC) issued the order granting authorisation for Driftwood LNG and the 96-mile Driftwood Pipeline, which will inter-connect the LNG terminal to the US natural gas market.
Under the MoU, Petronet and its affiliates intend to negotiate the purchase of up to 5 mtpa of LNG from Driftwood, concurrent with its equity investment, which remains subject to further due diligence and approval of its board of directors.
PM’s Roundtable With Energy Sector CEOs
Meanwhile, PM Modi also had a "fruitful" meeting with CEOs from the energy sector on the first day of his week-long US visit here on Saturday, the Ministry of External Affairs (MEA) said.
According to MEA spokesperson Raveesh Kumar, CEOs of 17 global energy companies, all of whom have engagement or presence in India, participated in the Roundtable.
The CEOs talked about enhancing their footprint in India. They also lauded the government's efforts towards Ease of Doing Business, steps taken towards deregulation in the sector, supported reforms and policies and were upbeat on the Indian economy, Kumar said.
(With inputs from PTI)
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