Tellurian Inc. said Thursday it has signed a deal to supply a subsidiary of global commodities trader Gunvor Group Ltd. with 3 million metric tons/year (mmty) of liquefied natural gas (LNG) from the proposed Driftwood LNG export terminal in Louisiana. 

The announcement was a major step forward for the 27.6 mmty facility proposed near Lake Charles, which has battled through a slump in the export market to keep the project alive. No final investment decision (FID) has been made. 

Under the sales and purchase agreement (SPA) with Gunvor Singapore Pte Ltd, Tellurian would supply LNG for 10 years. Volumes would be indexed to the Japan-Korea Marker (JKM) and Dutch Title Transfer Facility (TTF) benchmarks. LNG would be sold on a free-on-board (FOB) basis, and the JKM and TTF prices...