The MoU was signed in the presence of Indian Prime Minister Narendra Modi
Petronet LNG Limited (PLL) of India has signed a memorandum of understanding (MoU) with US natural gas company Tellurian Inc.
Under the MoU, PLL and its affiliates intend to negotiate the purchase of up to five million tons per annum (mtpa) of liquefied natural gas (LNG) from Tellurian and the two companies will endeavour to finalize the transaction agreements by March 31, 2020, reports moneycontrol.
The companies made the announcement after Prime Minister Narendra Modi had a meeting with the CEOs of top oil companies based in the US on September 21.
Tellurian's president and CEO Meg Gentle said: "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."
Meg added: "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."
The Driftwood project includes natural gas production, gathering, processing and transportation facilities, along with Driftwood LNG, a proposed 27.6 mtpa liquefaction export facility which will be located near Lake Charles, Louisiana on the US Gulf Coast.
In April, the US Federal Energy Regulatory Commission (FERC) issued an order granting authorization for Driftwood LNG and the 96-mile Driftwood Pipeline, which will interconnect the LNG terminal to the US natural gas market.