Tellurian signs second 10-yr LNG supply deal with trader, prices tied to TTF, JKM

London, (Quantum Commodity Intelligence) – Houston-based LNG producer Tellurian has signed a second long-term LNG supply agreement in the space of a week, this time with trading house Vitol, the companies announced Thursday.

The 10-year deal is for 3 million metric tons of LNG per year and will be referenced against the European TTF price index and Platts' JKM Asian marker.

The gas will be exported from Tellurian's Driftwood LNG terminal in Louisiana in the US Gulf.

Last week, Tellurian signed a similar 10-year arrangement to supply trading house Gunvor.

Tellurian said in a statement regarding the Vitol deal; "at today's prices, the agreement is valued at approximately $12 billion in revenue over ten years."

President and CEO Octávio Simões said, "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."

Physical LNG for Asia was seen pushing towards $11/mmBtu this week, while July futures were trading at around $10.60/mmBtu.

In Europe, benchmark TTF gas was trading above $25/MWh in the first days of June, or around $9/mmBtu.