Tellurian gains more time to fulfill LNG supply deal with Gunvor
Dec 30 (Reuters) - Tellurian Inc has revised its agreement with a unit of commodity trader Gunvor Group, securing the U.S. liquefied natural gas (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.
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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.
(Reporting by Ruhi Soni in Bengaluru)