US LNG firm Tellurian said it has boosted its second-quarter gas production by 47 percent when compared to the prior quarter, while it continues to progress with site preparation works for its Driftwood LNG project in Louisiana.
Tellurian produced 9 billion cubic feet (Bcf) of natural gas for the quarter ending June 31, 2022, as compared to 6.1 Bcf in the previous quarter and 2.1 Bcf in the same quarter last year.
The company’s upstream assets include 13,521 net acres and interests in 82 producing wells as of March 31, 2022.
During the quarter, Tellurian generated $61.3 million in revenues from natural gas sales, compared to $5.6 million in the April-May period last year.
The LNG terminal developer reported a net loss of about $35,000, or $0.00 per share, and an operating profit of $38.5 million.
Tellurian ended its second quarter of 2022 with about $823 million of cash and cash equivalents and some $1.34 billion in total assets.
“Tellurian’s business model provides a unique proposition amongst US LNG producers. By having our own natural gas production, we create cash from domestic sales that we can use for further investment, and upon completion of Driftwood LNG, we have an economic hedge for natural gas purchases which creates additional value for our shareholders and Tellurian,” president and CEO, Octavio Simoes, said.
Driftwood LNG progress
In March, Tellurian issued a limited notice to proceed to US engineering and construction giant Bechtel under its executed EPC contract to begin construction of phase one of the Driftwood LNG plant.
Phase one will include two LNG plants near Lake Charles with an export capacity of up to 11 million tonnes per annum (mtpa).
The firm is still working to complete financing for the project.
“While Tellurian continues to add natural gas production and sales revenue, we are also progressing with construction of Driftwood LNG, having cleared the site and begun an extensive pile driving program to set the foundation for the first plant,” Simoes added.