IOC in talks with US co Tellurian for LNG pact

Indian Oil Corp is in talks with US energy firm Tellurian Inc for a long-term liquefied natural gas (LNG) supply deal as well as an equity investment in the latter's Driftwood project, according to people familiar with the matter.

Indian Oil has grand ambitions in the natural gas segment but a turmoil in the international market has made it harder for it to source affordable LNG. Indian Oil, Petronet LNG and GAIL are all seeking long-term contracts but have been unable to lay their hands on any deal that can bring supplies ahead of 2026 when large global liquefaction capacity is expected to come onstream, easing the current crunch.

Indian Oil has begun discussions with Tellurian but is yet to agree on volume or the equity investment in Driftwood LNG project, according to people cited earlier.


Indian Oil didn't respond to ET's request for comment.

Tellurian told ET in an emailed response that it can't comment on specific commercial negotiations or contract terms. "We have watched with admiration the investment India has made in natural gas infrastructure and would be delighted to work with Indian companies on supply," it said. "Tellurian is prioritising strategic equity partners who may want LNG offtake for their portfolios and have freed up 6 mt within the first phase of Driftwood for that purpose."