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Tellurian and Vitol sign 10-year LNG agreement for 3 mtpa

6/3/2021

Tellurian - Press release

Tellurian and Vitol sign 10-year LNG agreement for 3 mtpa

Tellurian Inc. (Tellurian) (NASDAQ: TELL) announced
today it has finalized a liquefied natural gas (LNG) sales and purchase agreement (SPA) with
Vitol Inc. (Vitol). The SPA is for three million tonnes per annum (mtpa) on a free on board
(FOB) basis at Driftwood LNG for a ten-year period, indexed to a combination of two indices:
the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), each netted back
for transportation charges. At today’s prices, the agreement is valued at approximately $12
billion in revenue over ten years.

President and CEO Octávio Simões said, “Tellurian continues to execute on our plan to
market Driftwood LNG volumes on indices that our customers want. Vitol expressed interest
in the development of Driftwood early on, and it is fulfilling to finalize this agreement with the
world’s largest independent trader of energy. As the world electrifies and our population
grows, the demand for reliable, low-cost energy will continue to increase. LNG provides a
stable source of fuel at an attractive price, and Tellurian’s integrated model is positioned
perfectly to offer volumes on JKM, TTF or blended price basis.”

Executive Vice President LNG Marketing & Trading Tarek Souki added, “Tellurian has made
exceptional progress on our intended first phase capacity sales by securing this second SPA
with another respected global energy trading business. The two recent agreements
represent an aggregate of $24 billion in estimated revenue; we will continue to be deliberate
and selective in choosing our additional customers.”

Pablo Galante Escobar, Global Head of LNG and European Gas & Power at Vitol said: “Vitol
is excited to conclude this agreement with Tellurian. Our long-term commitment and
investment grade rating will help Tellurian as they continue their path to financial close.”
Ben Marshall, CEO of Vitol Inc. added: “Vitol’s business continues to grow and evolve in the
Americas and around the world. This agreement will make Vitol one of North America’s
largest exporters of natural gas, providing our customers with cost effective and cleaner fuel
solutions.”