New Delhi, July 13 -- In what may be a big casualty of Covid-19 related market disruptions, India's Petronet LNG Ltd. may push back its $2.5 billion investment plan in US LNG developer Tellurian's upcoming Driftwood LNG terminal in Louisiana.
Government sources said that with spot LNG prices now crashing to about $2 per million British thermal unit (mmBtu) and gas widely available in the market, it would make little sense to sign an agreement committing to pay on sea price of $3.5 to $4.5 per mmBtu for 40 years for the gas. The delivered price of gas would be even higher.
The deal would have to be renegotiated given the current market prices, sources said.
In September last year a non-binding memorandum of understanding (MoU) was signed ...