Tellurian Gains More Time to Fulfill LNG Supply Deal with Gunvor
(Reuters) — Tellurian Inc. has revised its agreement with a unit of commodity trader Gunvor Group, securing the U.S. LNG developer more time to meet its last remaining major supply deal.
The company now has until Jan. 31, 2023, a one-month extension, to meet certain terms of the deal, according to a filing on Friday. The amendments include changes to the index pricing of the fuel to be sold.
Tellurian in May last year signed the deal with Gunvor to supply 3 million tonnes per annum (MTPA) of LNG. The deal had represented the equivalent of about $12 billion in revenue over the agreement's 10-year term when announced.
The deal is seen as crucial to Tellurian constructing its 27.6 MTPA Driftwood LNG facility in Louisiana, especially after the Houston-based firm lost two of its biggest customers, Shell and Vitol, earlier this year.
Friday's amended terms also allow Gunvor to end the deal immediately, instead of providing a 45-day advance notice.
Tellurian also agreed to a new sale of up to $500 million in common shares to T.R. Winston & Co., replacing agreements with B. Riley Securities and Credit Suisse to sell up to $200 million in bonds and up to $189 million in shares.
The troubled company had earlier this year scrapped a $1-billion high-yield bond sale that would have funded the initial construction of the proposed multi-billion facility.
Shares of Tellurian fell 5.2% to $1.67 in morning trading. They are down 45% for the year.
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