Tellurian announced that its subsidiary, Tellurian Trading UK, has entered into a Memorandum of Understanding with Vitol to supply 1.5M tonnes per annum of liquefied natural gas from Tellurian Trading's LNG offtake capacity at the proposed Driftwood LNG export terminal. The transaction price is based on the Platts Japan Korea Marker and is for a minimum term of 15 years. Under the MOU, Tellurian and Vitol have agreed to negotiate a LNG Sale and Purchase Agreement under which Vitol will purchase LNG free on board. The SPA will contain certain conditions precedent, including Tellurian's receipt of regulatory approvals and a final investment decision to construct the Driftwood LNG export terminal. In addition, Vitol is evaluating a potential equity investment in the Driftwood Holdings partnership. Estimated Driftwood project timeline: Final Environmental Impact Statement - 18 January 2019; Driftwood final investment decision - 1H19; Begin construction - 1H19; Begin operations - 2023.
