Tellurian slashes net loss in Q3

US LNG export project developer Tellurian reported a lower net loss in the third quarter, while it also started production from two new natural gas wells.

Tellurian posted a net loss of about $18.7 million, compared to a loss of $29.4 million in the July-September period last year.

The developer of the 27.6 mtpa Driftwood project ended its third quarter with about $210.8 million of cash and cash equivalents and no borrowing obligations.

Natural gas sales for the third quarter generated about $15.6 million in revenues compared to $7.3 million during the same period of 2020.

During the quarter, the firm signed a long-term LNG sales deal with Shell and raised about $116 million in a public stock offering.

The Houston-based firm has this year signed three 10-year LNG supply deals for its Driftwood project in Louisiana for a total of 9 million tonnes per year. These include contracts with Gunvor and Vitol.

Tellurian said it has sold all the necessary offtake for the first phase of the Driftwood LNG plant which would include two units with a capacity of about 11 mtpa. Total development costs for this phase would reach about $11.9 billion.

Chief executive Octavio Simoes said Tellurian recently brought production online from
two newly completed natural gas wells, “adding to our financial strength and integrated model that provides a valuable hedge to volatile global prices.”

“By year end 2021 we plan to produce approximately 70 million cubic feet equivalent per day (mmcfed),” he said.

In addition, Tellurian has authorized a new drilling program and plans to drill 12 – 14 wells to produce approximately 220 mmcfed by year end 2022.

“We have turned our focus to financing Driftwood LNG and plan to give Bechtel notice to proceed with construction in early 2022,” Simoes said.

- Advertisements -

Most Popular

BP expects LNG demand to grow up to 40 percent by 2030

UK-based energy giant BP expects global demand for liquefied natural gas (LNG) to rise up to 40 percent by...

Venture Global’s Plaquemines LNG gets OK to introduce gas to GTG

US LNG exporter Venture Global LNG has received approval from US energy regulators to introduce natural gas to the...

AG&P LNG inks deal with BKLS to deliver spot LNG cargo to China

Nebula Energy’s AG&P LNG has signed a deal with Singapore-based BK LNG Solution (BKLS) to deliver one spot liquefied...

More News Like This

Tellurian, Aethon wrap up $260 million deal

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, has completed the previously reported...

Houston says Tellurian in talks with multiple LNG buyers

US LNG firm Tellurian, the developer of the Driftwood LNG export plant in Louisiana, is in negotiations with multiple...

Aethon to buy Tellurian’s upstream assets for $260 million

Dallas-based private investment firm Aethon Energy Management has agreed to buy Tellurian’s integrated upstream assets for $260 million. The...

Tellurian updates on Driftwood LNG construction work

US LNG terminal developer Tellurian released the latest construction update for the first phase of its Driftwood LNG terminal...