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.
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 per cent to $1.67 in morning trading. They are down 45 per cent for the year.