We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tellurian (TELL) Seals Long-Term LNG Supply Deal With Vitol
Read MoreHide Full Article
Tellurian Inc. (TELL - Free Report) entered a sale and purchase (“SPA”) agreement with Vitol Inc. to deliver 3 million tons per year (mtpa) of liquefied natural gas (“LNG”) from its Driftwood LNG production and export terminal in Louisiana.
Per the terms of the deal, the company will supply LNG to commodity trader Vitol from its proposed LNG facility in the United States Gulf Coast on a free on board (“FOB”) basis for 10 years. Notably, the majority of LNG in the United States is sold on a FOB basis, wherein LNG ownership is transferred to the buyers when it is loaded on a ship at the export terminal.
Earlier, Vitol expressed interest in the development of the Driftwood project since the world is slowly shifting the energy demand from mainly fossil fuels toward electricity and low-carbon fuels. Hence, the demand for reliable, low-cost energy continues to increase as LNG provides a stable source of fuel at an attractive price. Notably, the deal will position Vitol as one of the largest natural gas exporters of North America, providing affordable and cleaner fuel solutions for customers.
In the first week of June, Tellurian entered an identical agreement with commodity trader Gunvor Group to supply the same volume of LNG from its Driftwood facility for 10 years. The two deals were indexed to a combination of the Japan Korea Marker and the Dutch Title Transfer Facility. Importantly, the deals represent significant progress for Tellurian in its commercial efforts, following a two-year break in firm activity.
The two deals are expected to generate $24 billion in revenues over 10 years, based on current prices. Tellurian continues to implement the work plan to market Driftwood LNG volumes on indices that customers want. Above all, the Vitol agreement brings Tellurian a step closer to reach a final investment decision on Driftwood, which is targeted for the first quarter of 2022.
Company Profile
Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer.
Zacks Rank & Stocks to Consider
The company currently carries a Zack Rank #4 (Sell).
Over the past 60 days, the Zacks Consensus Estimate for Canadian Natural’s 2021 earnings has been raised by 17.2%, while that for SilverBow has been raised by 39.3%.
Petrobras’s earnings for 2021 are expected to rise 14.7% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Tellurian (TELL) Seals Long-Term LNG Supply Deal With Vitol
Tellurian Inc. (TELL - Free Report) entered a sale and purchase (“SPA”) agreement with Vitol Inc. to deliver 3 million tons per year (mtpa) of liquefied natural gas (“LNG”) from its Driftwood LNG production and export terminal in Louisiana.
Per the terms of the deal, the company will supply LNG to commodity trader Vitol from its proposed LNG facility in the United States Gulf Coast on a free on board (“FOB”) basis for 10 years. Notably, the majority of LNG in the United States is sold on a FOB basis, wherein LNG ownership is transferred to the buyers when it is loaded on a ship at the export terminal.
Earlier, Vitol expressed interest in the development of the Driftwood project since the world is slowly shifting the energy demand from mainly fossil fuels toward electricity and low-carbon fuels. Hence, the demand for reliable, low-cost energy continues to increase as LNG provides a stable source of fuel at an attractive price. Notably, the deal will position Vitol as one of the largest natural gas exporters of North America, providing affordable and cleaner fuel solutions for customers.
In the first week of June, Tellurian entered an identical agreement with commodity trader Gunvor Group to supply the same volume of LNG from its Driftwood facility for 10 years. The two deals were indexed to a combination of the Japan Korea Marker and the Dutch Title Transfer Facility. Importantly, the deals represent significant progress for Tellurian in its commercial efforts, following a two-year break in firm activity.
The two deals are expected to generate $24 billion in revenues over 10 years, based on current prices. Tellurian continues to implement the work plan to market Driftwood LNG volumes on indices that customers want. Above all, the Vitol agreement brings Tellurian a step closer to reach a final investment decision on Driftwood, which is targeted for the first quarter of 2022.
Company Profile
Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer.
Zacks Rank & Stocks to Consider
The company currently carries a Zack Rank #4 (Sell).
Some better-ranked players in the energy space are Canadian Natural Resources Limited (CNQ - Free Report) , SilverBow Resources Inc. (SBOW - Free Report) and Petrobras (PBR - Free Report) , each currently carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, the Zacks Consensus Estimate for Canadian Natural’s 2021 earnings has been raised by 17.2%, while that for SilverBow has been raised by 39.3%.
Petrobras’s earnings for 2021 are expected to rise 14.7% year over year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>