Tellurian boosts gas production as Driftwood LNG work progresses

US LNG terminal developer Tellurian reported a jump in its natural gas production as it continues to move forward with early construction work on its Driftwood LNG export plant in Louisiana.

Tellurian increased natural gas production fourfold to some 225 million cubic feet per day (MMcfd) in the fourth quarter of 2022 as compared to about 55 MMcfd in the fourth quarter of 2021.

The firm said it produced 47.3 Bcf of natural gas for the year ended December 31, 2022. As of December 31, 2022, Tellurian’s natural gas assets include 27,689 net acres, interests in 143 producing wells, and estimated proved reserves of 445 Bcf.

Net loss reduced

Tellurian reported a net loss of about $49.8 million or $0.09 per share for 2022, compared to a net loss of $114.7 million, or $0.28 per share, for 2021.

The firm generated about $391.9 million in total revenues from sales of LNG and natural gas, driven by increased realized natural gas prices and production volumes, compared to $71.3 million for 2021.

As of December 31, 2022, Tellurian had approximately $1.4 billion in total assets, including about $474.2 million of cash and cash equivalents.

“Tellurian is executing on our plans to progress Driftwood LNG and has invested approximately $1.0 billion in the project since inception,” president and CEO, Octávio Simões, said.

“We have also significantly increased our natural gas production and reduced carbon impact through nature-based solutions. At the same time, we are diligent in our search to secure a financing package to support long-term returns for shareholders,” he said.

Driftwood LNG

In January, Tellurian secured one more month to February 28, 2023 to meet the conditions of its LNG supply deal with trader Gunvor.

This is the only LNG supply deal Tellurian has for the planned 27.6 mtpa Driftwood LNG project after both of its LNG supply deals with Shell and Vitol were canceled.

Tellurian’s co-founder and executive chairman, Charif Soukirecently said that the LNG terminal developer is in talks with “several equity providers” as it looks to secure financing for its project.

Under the first phase, Tellurian aims to build two LNG plants near Lake Charles with an export capacity of up to 11 mtpa and expects the costs to reach about $13.6 billion.

US engineer and construction giant Bechtel is moving forward with the initial site works under a limited notice to proceed issued in March last year, while Tellurian is working to secure funds for the project.

Tellurian said in the results report that Bechtel completed demolition of all existing land structures, driven over 30 percent of all Phase 1 piles, and started foundation work for Plant 1 compressors.

The firm is currently planning additional site work that would “significantly advance piling, pouring foundations, construction of marine offloading facilities, and other work throughout 2023,” Tellurian said.

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