Tellurian reported a net loss of about $14.2 million and an increase in its natural gas production and sales in the third quarter, as it continues to work on finding equity partners for its Driftwood LNG export project in Louisiana.
The US LNG firm produced 11.4 billion cubic feet (Bcf) of natural gas for the quarter ending September 31, 2022, as compared to 9 Bcf in the previous quarter and 3.9 Bcf in the same quarter last year.
During the quarter, Tellurian generated $81.1 million in revenues from natural gas sales, compared to $15.6 million in the same period last year and $61.3 million in the previous quarter.
Tellurian’s net loss of $14.2 million is lower compared to a net loss of $15.9 million in the third quarter last year.
According to Tellurian, it ended the third quarter of 2022 with about $1.4 billion in total assets, including about $607.5 million of cash and cash equivalents.
Looking for strategic partners
“Tellurian continues to increase our domestic natural gas production by adding to our footprint, having now a total of 22,420 net acres, interests in 131 producing wells located in the Haynesville Shale, and more than 300 drillable locations,” chief executive Octavio Simoes said.
“In addition, Bechtel is continuing construction on the Driftwood terminal, and Tellurian is fully engaged in our efforts to secure strategic equity partners. The underlying market fundamentals strongly support our strategy of seeking the differential value between domestic and international natural gas prices for our shareholders,” Simoes said.
In September, Tellurian’s co-founder and executive chairman, Charif Souki, said the firm would focus on finding equity partners for its Driftwood LNG export project in Louisiana after it withdrew a senior notes offering.
After that, Tellurian said that its LNG supply deals with Shell and Vitol were both canceled.
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).