SHANGHAI: French oil and gas major Total SA and US company Tellurian Inc. have signed deals supporting the development of the proposed $30 billion Driftwood liquefied natural gas (LNG) project, the two firms said on Wednesday. Under a non-binding heads of agreement (HOA), Total will invest in Driftwood Holdings and will offtake 2.5 million tons per annum (mtpa) of LNG. The HOA is for Total to make a $500 million equity investment in the integrated Driftwood project in Louisiana and to buy one mtpa of LNG from Driftwood. In addition, the HOA specifies that both companies will enter into a binding sales and purchase agreement (SPA) for a further 1.5 mtpa of LNG from Tellurian Marketing’s LNG offtake volumes from the proposed Driftwood terminal.
