Shell long-term SPAs boost Driftwood LNG

The Shell SPAs follow on the heels of similar agreements with Gunvor Singapore and Vitol in May and June. Sold on a free on board basis at Driftwood LNG, the Shell SPAs are indexed to a combination of two indices: the Japan Korea Marker and the Dutch Title Transfer Facility, each netted back for transportation charges, said Tellurian.

“Shell manages one of the largest and most diverse portfolios of LNG in the world and is leading the industry in delivering CO₂e-neutral LNG cargoes,” said Mr Simões. “Owing to Driftwood’s integrated project, our ability to accurately measure well-to-loading-arm emissions and reduce emissions where operationally possible, further enables Shell’s CO₂e-neutral LNG offering.”

Added Shell Energy executive vice president Steve Hill, “LNG demand is expected to nearly double by 2040. This deal secures additional competitive volumes for our portfolio by the mid-2020s, enabling us to continue providing diverse and flexible LNG supply to our customers. We look forward to working with Tellurian.”

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