On the sidelines of Prime Minister Narendra Modi’s meeting energy sector CEOs in Houston ahead of the ‘Howdy, Modi‘ event, India’s Petronet signed a deal with US LNG developer Tellurium for up to 5 million tonnes of LNG through equity investment in Driftwood.
According to a Reuters report, this is part of the wider cooperation between both the countries as Prime Minister Narendra Modi is expected to meet US President Donald Trump to discuss ways to deepen their energy and trade relationship.
Petronet and Tellurian had first signed a broader agreement in February, but it did not specify investment numbers.
The MoU will help India fructify its aim to encourage the use of cleaner fuel. Modi has set a target to raise the share of natural gas in India’s overall energy mix to 15% in the next few years from about 6.5%.
Tellurian is offering an equity interest in Driftwood Holdings, which comprises Tellurian’s upstream company, its pipeline and the upcoming terminal that will be able to export 27.6 million tonnes of LNG a year.
A $500 million investment in Driftwood would give the stakeholder rights over one million tonnes a year of LNG over the life of the project, according to a presentation by Tellurian posted on the US company’s website.
After reaching Houston, the Prime Minister said that he was looking forward to a wide range of programmes in this dynamic and energetic city. “Howdy Houston! It’s a bright afternoon here in Houston. Looking forward to a wide range of programmes in this dynamic and energetic city today and tomorrow,” Modi tweeted.
Going by his schedule, PM Modi is scheduled to attend ‘Howdy, Modi’ event at Houston on September 22, his third in the US after Maddison Square Garden in 2014 and San Jose in 2015. On September 24, he will hold a bilateral meeting with US President Donald Trump in New York.
During his stay in the US, Modi intends to hold as many as 20 bilateral meetings with leaders from all continents, foreign secretary Vijay Keshav Gokhale had said.