Tellurian Inc. said Friday that two sales and purchase agreements (SPA) underpinning its proposed Driftwood LNG terminal in Louisiana have been terminated, dealing another major blow to the project, which was already facing delays.

In a regulatory filing with the Securities and Exchange Commission (SEC), Tellurian said an affiliate of Shell plc had terminated a deal to buy 3 million metric tons/year (mmty) of liquefied natural gas from the 27 mmty Driftwood facility. The SPA was signed last year after the company landed two others with Vitol Inc. and Gunvor Group Ltd. that Tellurian said at the time would allow it to move forward with the first 11 mmty phase of the project. 

After the deals were signed, Tellurian shifted its focus to the capital markets in hopes of securing...