Petronet LNG and U.S. liquefied natural gas developer Tellurian Inc signed an initial agreement under which the Indian company and its affiliates will negotiate to buy up to 5 million tonnes per annum of liquefied natural gas, the companies said on Saturday.
Petronet will take an equity investment in Tellurian's Driftwood project in Louisiana, they said, without providing financial details. The companies said they would try to finalize the deal by March 31, 2020.
Sources told Reuters on Friday that Petronet would sign a memorandum of understanding with Tellurian to invest $2.5 billion for rights of up to 5 million tonnes a year of LNG over the lifespan of the Driftwood project.
The announcement comes as Indian Prime Minister Narendra Modi and U.S. President Donald Trump are set to meet in Houston this weekend to discuss ways to deepen their energy and trade relations.
(Reporting by Philip George in Bengaluru, Editing by Rosalba O'Brien)