Sept 21 (Reuters) - Petronet LNG and U.S.liquefied natural gas developer Tellurian Inc signed aninitial agreement under which the Indian company and itsaffiliates will negotiate to buy up to 5 million tonnes perannum of liquefied natural gas, the companies said on Saturday.
Petronet will take an equity investment in Tellurian'sDriftwood project in Louisiana, they said, without providingfinancial details. The companies said they would try to finalizethe deal by March 31, 2020.
Sources told Reuters on Friday that Petronet would sign amemorandum of understanding with Tellurian to invest $2.5billion for rights of up to 5 million tonnes a year of LNG overthe lifespan of the Driftwood project.
The announcement comes as Indian Prime Minister NarendraModi and U.S. President Donald Trump are set to meet in Houstonthis weekend to discuss ways to deepen their energy and traderelations.
(Reporting by Philip George in Bengaluru, Editing by RosalbaO'Brien)