The MoU was signed on the sidelines of Prime Minister Narendra Modi's meeting with CEO's of the energy sector in Houston city.
The two companies have signed the MoU wherein Petronet and its affiliates intend to negotiate the purchase of up to five million tonnes per annum (5mpta) of LNG from Driftwood, concurrent with its equity investment, which remains subject to further due diligence and approval of its board of directors.
Tellurian and Petronet will aim to finalise the transaction agreements by March 31 next year.
In his first engagement during his ongoing US visit, Prime Minister Modi held a roundtable conference with CEOs from the energy sector.
MEA Spokesperson Raveesh Kumar in a tweet said, "Getting straight to business. PM narendramodi just concluded a fruitful interaction with top energy sector CEOs at a Roundtable meeting in #Houston. The discussion focused on working together for energy security and expanding mutual investment opportunities between India & US."
Modi is scheduled to address over 50,000 Indian-Americans at the "Howdy, Modi" event on September 22, in which he will be joined by US President Donald Trump.
PM Modi on Saturday arrived in Houston, as he began his week-long visit to the US that will see him hold talks with President Donald Trump and also address the UNGA.
According to his itinerary for Saturday, Prime Minister Modi will head straight for a roundtable meeting with oil sector CEOs, and later for a brief interaction with the Indian diaspora and photo op with them.
On Sunday, he will attend the mega 'Howdy Modi' event that will see a 50,000 crowd of Indian diaspora gather. The event will also be attended by President Trump in a rare gesture.
(inputs from agencies)