Shares of Tellurian (TELL) - Get Tellurian Inc. Report surged Thursday after the developer of liquefied natural gas (LNG) signed a 10-year agreement to supply energy trading firm Gunvor Group with LNG from its proposed liquefaction facility terminal in Louisiana.
Shares of the Houston company jumped 27.4% to $4.04 at last check.
The sale and purchase agreement is for three million tonnes of LNG per year. "This agreement represents the equivalent of approximately $12 billion in revenue over the 10-year term of the agreement," said Tellurian Executive Vice President LNG Marketing & Trading Tarek Souki in a statement.
The LNG will be delivered from Tellurian’s Driftwood LNG facility near Lake Charles.
"Tellurian intends to market up to 10 million tonnes per annum of LNG in our first phase," said Tellurian President and CEO Octávio Simões in a statement.
"We welcome Gunvor, the largest independent global trader of LNG volumes, to Driftwood and look forward to providing a cleaner fuel to meet growing global energy needs and enable energy access," Simões added.
Tellurian is trying to develop a $17-billion liquefied natural gas project in Louisiana
Last month, chairman and co-founder of Tellurian Charif Souki blamed short-sellers for a precipitous plunge in the company’s stock price.
During the last two weeks of March, short positions in Tellurian increased by nine million shares, reaching about 13.3% of the company’s traded stock, data compiled by Bloomberg News showed. Shares have tumbled almost 60% since mid-February.