The stock of Tellurian Inc (NASDAQ: TELL) dropped by a margin of 4.46% to settle at $4.93. Over the years, the company focused on the manufacture of liquefied natural gas has disclosed details about the recent deal it struck with Vitol. This sale and purchase deal involves 3 million tones per annum (MTPA) of LNG and is expected to span about 10 years.
Details about the deal
The latest agreement happens to be the second of the kind, according to the company. Tellurian makes a monumental move in pronouncing two 3-MTPA deals spanning 10 years within one week.
The other deal in question involved commodity trader Gunvor Group. One of the common aspects of the two deals is how both happen to be valued at $12 billion over the contractual timeframe.
The recent developments continue to impact Tellurian shares significantly. The latest news highlighted the company’s shares as having hit the 24% mark in terms of improvement. It happens to be a major milestone for a company that hasn’t hit such a high notch since February 2020.
The company’s proposed Driftwood export project situated in Louisiana will be entrusted with the provision of LNG.
Thoughts from top officials
Several officials working with Tellurian have expressed their views regarding the recent developments. The company’s Executive Chairman Charif Souki spoke in the course of this week through video, outlining his stand about the turn of events. He started by applauding Tellurian for the far it has come, asserting that it is a big deal getting to the point of kick-starting construction endeavors. The officials say that everything is already in place and that they might start the construction activities this summer.
Souki also spoke concerning Bechtel and the plans underway to set up a liquefaction plant. The leader outlined that his company was ready to give Bechtel a heads-up through a notice to proceed.
The other vocal official has been the Credit Suisse analyst Spiro Dounis. This leader seems impressed with the company’s rate of commercial progress. He says that the rate has progressed from “virtually nothing” to once per week.
The company’s CEO, Octavio Simoes, seems impressed by their progress. He outlines that they won’t stop in their efforts to execute the plan for marketing Driftwood LNG in significant amounts of indices that impress their customer base.