Total and Tellurian to develop Driftwood LNG project

Total and Tellurian signed a series of agreements strengthening the partnership between the two companies to develop the Driftwood LNG project located in Louisiana, USA.

The agreements include:

• A Heads of Agreement (HoA) upon which Total will invest in Driftwood Holdings and will offtake 2.5 Million tons per annum (Mtpa) of LNG. More precisely, Total will make a Us$500 million equity investment in the Driftwood LNG and purchase 1 Mtpa of LNG from the proposed project; Tellurian and Total will also enter into a sales and purchase agreement (SPA) for a further 1.5 Mtpa of LNG from Tellurian Marketing’s LNG offtake volumes from the Driftwood LNG. The SPA will be for the purchase of LNG free on board (FOB) for a minimum term of 15 years, at a price based on the Platts Japan Korea Marker (JKM).
• An Agreement whereby Total will purchase around 20 million shares of Tellurian common stock for an amount of US$ 200 million.

The agreements are subject to the relevant regulatory approvals and to the Final Investment Decision (FID) of the Driftwood LNG project.

Driftwood LNG is an integrated LNG project that includes building gas pipelines from gas producing areas in Texas and a low cost modular concept liquefaction plant with a capacity of 16.6 Mtpa (Phase 1) and a possibility of an increase to 27.6 Mtpa.