Tellurian to sell LNG at a lower rate of $6 to India


Tellurian to sell LNG at a lower rate of $6 to India

US-based Tellurian Inc, which signed an initial agreement to sell gas to Petronet LNG in the presence of Prime Minister Narendra Modi, will deliver liquefied natural gas (LNG) to India at a price of $6 per unit, a top executive and member of its founding family said, signalling a much lower price than the ceiling for output from difficult fields in India.

The current gas price in India is $3.23 per million British thermal units (mmBtu) but the ceiling for gas from difficult fields is $8.43 per unit. “We can produce gas in Haynesville (Louisiana) at $2/mmbtu and it will land in India at around $6/mmbtu or less,” Tarek Souki, senior vice president for LNG, told ET.

French LNG supplier Total, which is buying equity in Adani Gas, has also invested in Tellurian, giving the energy major a stake in a major supplier and a rapidly growing customer base of natural gas in India. Read More

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