Souki: Tellurian to focus on finding equity partners for Driftwood LNG

Tellurian will now focus on finding equity partners for its Driftwood LNG export project in Louisiana after it withdrew a senior notes offering, according to the firm’s co-founder and executive chairman, Charif Souki.

Due to uncertain conditions in the high-yield market, Tellurian withdrew the offering that would allowed the firm to stay on schedule to deliver LNG from Driftwood in the first half of 2026.

Souki said in a video update posted on YouTube on Tuesday that circumstances in the yield market, with inflation and uncertainty, have created “havoc in the debt market”.

“The debt market have made it very difficult to do a debt deal today and we will never put in jeopardy the balance sheet of Tellurian to try to accelerate the process by taking disproportionate risks,” Souki said.

Following withdrawal of the offering, this puts the Driftwood LNG export project “in jeopardy to deliver gas on the schedule that we were hoping to stay to,” according to Souki.

“The money is most likely to come from a potential strategic partner”

Tellurian “will now focus to find partners for the equity of Driftwood, a process we have started six to nine months ago,” Souki said.

“The money is most likely to come from a potential strategic partner, because this is where the money is today,” he said.

He said investors have all indicated that they would like to “participate in an American LNG project because the US will be caught out to provide a disproportionate amount of the natural gas required for the rest of the world.”

Souki added that the company would continue with its plans, but staying on schedule would become “more difficult”.

The first phase of the Driftwood project is worth about $12.8 billion.

It includes two LNG plants near Lake Charles with an export capacity of up to 11 million tonnes per annum (mtpa).

In March, Tellurian issued a limited notice to proceed to compatriot engineering and construction giant Bechtel under its executed EPC contract to begin construction of phase one of the Driftwood LNG plant.

According to the latest update, Tellurian and Bechtel are moving forward with the works which include site preparation, concrete pile driving, offloading of concrete pile shipments, mobilization of construction equipment and tools, etc.

Most Popular

TotalEnergies targets Mozambique LNG restart by mid-year, CEO says

France's TotalEnergies and its partners in the giant Mozambique LNG project are planning to restart construction on the 12.8 mtpa project by the middle of this year, according to Patrick Pouyanne, CEO of TotalEnergies.

Three dead in accident at Port Arthur LNG site

Sempra Infrastructure and Bechtel confirmed that an incident took place on Tuesday at the Port Arthur LNG construction site in Texas, resulting in three fatalities and two injuries.

Ineos to supply gas to Covestro

UK's Ineos has signed a deal to supply natural gas to Germany's Covestro.

More News Like This

BP to supply feed gas to Woodside’s Louisiana LNG

UK-based energy giant BP has agreed to supply feed gas to Woodside's three-train, 16.5 mtpa Louisiana LNG export project.

Woodside takes FID on $17.5 billion Louisiana LNG project

Australian LNG player Woodside has made a final investment decision to develop the three-train, 16.5 mtpa Louisiana LNG project. The total capital expenditure for the LNG project, pipeline, and management reserve is $17.5 billion.

Woodside assessing tariff impact on Louisiana LNG

Australian LNG player Woodside is assessing the impact of recent US tariffs and other trade measures on its Louisiana LNG project, according to Woodside CEO Meg O’Neill.

Woodside, Uniper ink Louisiana LNG supply deal

Australia's Woodside has signed LNG sale and purchase agreements with Germany's Uniper to supply the latter from its planned Louisiana LNG project and its global portfolio.