Tellurian shareholders approve merger with Woodside

Tellurian said in a statement on Friday that its stockholders have approved the merger agreement proposal.

The agreement was approved during a special meeting of the company’s shareholders.

Tellurian did not provide further details.

Woodside announced on July 22 that it has entered into a definitive deal to buy the US LNG firm.

Woodside said the consideration for the transaction is an all-cash payment of about $900 million, or $1.00 per share of outstanding Tellurian common stock, while the implied enterprise value is about $1.2 billion.

In connection with entry into a binding agreement to acquire Tellurian, Woodside will provide a loan to Tellurian of up to $230 million to ensure Driftwood LNG site activity and de-risking activities maintain momentum prior to completion of the transaction, it said.

Woodside is targeting FID readiness for Phase 1 of the Driftwood LNG project from the first quarter of 2025.

In March 2022, Tellurian issued a limited notice to proceed (LNTP) to Bechtel.

Under the first phase, Tellurian aims to build two LNG plants near Lake Charles in Louisiana with an export capacity of up to 11 mtpa.

The full project would include five plants with a total capacity of about 27.6 mtpa.

Woodside CEO Meg O’Neill recently said that the company’s acquisition of Tellurian was “too good to pass up.”

“When the Tellurian opportunity crossed our desk, we thought.. this is really too good to pass up,” O’Neill said.

“You know 27.6 million tonnes, that is as much LNG capacity as we’ve built in our 35 years in Australia,” she said.

O’Neill also said that Woodside is seeing strong interest from firms to sell equity in Tellurian’s Driftwood LNG export project.

Woodside may sell up to 50 percent of the stake in the Driftwood LNG project.