Tellurian to acquire 15 tcf of gas for Driftwood LNG project

Tellurian to acquire 15 tcf of gas for Driftwood LNG project
Image courtesy of Tellurian

The Houston-based LNG export project developer, Tellurian plans to acquire 15 trillion cubic feet of natural gas over the life of its Driftwood LNG project.

The company’s president and CEO Meg Gentle said the decision is a part of the overall strategy for the development of Driftwood Holdings, a Tellurian unit.

“We are looking primarily in the Haynesville shale and are speaking with many producers, but we have no transaction close to completion at this point,” Gentle said.

She also added that any asset acquisition would occur at the Driftwood Holdings level and would be funded by the third-party investments. The company is making progress in its discussions with third-party investors and is expecting to execute agreements over the next few months.

The company expects to “be in a position to close funding of phase one for 11 million tonnes between the third and fourth quarters of 2018,” Gentle said.

Driftwood Holdings has been formed by Tellurian to own and operate Tellurian’s gas producing assets, pipeline assets, and the 27.6 mtpa Driftwood LNG export facility.

It has engaged Goldman Sachs and SG Americas Securities (Societe Generale), to serve as financial advisors for Driftwood on the project.

Tellurian added in its statement it is offering equity interests in Driftwood Holdings at a cost of $1,500 per tonne in exchange for liquefied natural gas at cost.

The company expects its variable and operating costs to be around $3/mmBtu free on board (FOB), however, it also plans to retain 7 to 12 mtpa of the project’s capacity.

Share this article

Follow LNG World News

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

Offshore Energy Exhibition and Conference 2019

The three-day event includes an exhibition where an expected 600+ supply chain companies will showcase their products and services.

read more >

LNGgc London

LNGgc is a fantastic way of raising attendees’ company profile within this market and creating greater awareness of their brand…

read more >

5th CWC China LNG & Gas International Summit & Exhibition

5th CWC China LNG & Gas International Summit & Exhibition will return 16 – 17 October 2019, bringing together the key players…

read more >