Tellurian Inc's (NASDAQ: TELL) share price is rallying after the announcement that it has finalised a liquefied natural gas (LNG) sales and purchase agreement with Vitol Inc.
The agreement is for three million tonnes per annum for ten years, indexed to a combination of two indices: the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF).
The deal is valued at approximately $12 billion in revenue over ten years at today's prices.
President and CEO Octávio Simões said, “Tellurian continues to execute on our plan to market Driftwood LNG volumes on indices that our customers want. Vitol expressed interest in the development of Driftwood early on, and it is fulfilling to finalize this agreement with the world’s largest independent trader of energy.
“As the world electrifies and our population grows, the demand for reliable, low-cost energy will continue to increase. LNG provides a stable source of fuel at an attractive price, and Tellurian’s integrated model is positioned perfectly to offer volumes on JKM, TTF or blended price basis.”
Tellurian's share price is currently trading 21% above Wednesday's close at $5.25.
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