Tellurian to ink Driftwood LNG deals soon, Souki says

US LNG export project developer Tellurian will soon finalize several commercial agreements for its planned Driftwood project in Louisiana, according to the firm’s co-founder and executive chairman Charif Souki.

“We will probably sell 12-15 million tonnes of capacity over the next few weeks entirely on Zoom,” Souki said on Wednesday during a discussion as part of the Citi Global Energy & Utilities Virtual Conference.

Tellurian has been looking for a while now to secure deals for its 27.6 mtpa Driftwood development as it looks to start building the project.

France’s Total is currently the only company that made a firm commitment to support the project with a $500 million investment.

If finalized, the capacity of up to 15 million tonnes of LNG would be sufficient for the project’s first phase.

Souki told Platts that Tellurian was in advanced talks with four or five LNG buyers for volumes that the firm is marketing on its own, not volumes that would be covered by equity partners the company has been soliciting.

In addition, Souki also confirmed at the virtual conference that the firm would start construction on the LNG project this summer. This would include some preparational work prior to the start of full construction activities.

Driftwood has a preliminary $15.5 billion lump-sum turn key engineering, procurement and construction contract with Bechtel.

“We expect to give notice to proceed to Bechtel in the first quarter of next year,” he said.

Worth mentioning here, Tellurian reported a lower net loss in the first quarter while the firm also paid off all its debt.

Also, US-based BlackRock, one of the world’s largest asset managers, recently revealed it had purchased more shares in the LNG developer.

- Advertisements -

Most Popular

Stena Bulk sells its last LNG carrier

Swedish shipping firm Stena Bulk has sold its last liquefied natural gas (LNG) carrier to an undisclosed Asian buyer. The...

Shell launches largest bio-LNG plant in Germany

A unit of LNG giant Shell has launched what it says is the largest bio-LNG production plant in Germany. The...

South Korean yards built 500 LNG carriers for export in 30 years

South Korean yards have completed 500 liquefied natural gas (LNG) tankers for export since 1994, according to the Ministry...

More News Like This

Tellurian explores sale options, makes leadership changes

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, has made new changes to...

Tellurian expects to take FID on two Driftwood LNG plants in 2024

US LNG firm Tellurian said on Monday it expects to take a final investment decision in 2024 to build...

Tellurian reports $166.2 million net loss in 2023

US LNG firm Tellurian reported a net loss of $166.2 million in 2023, as it continues to work on...

Tellurian amends debt terms to support sale of its upstream assets

US LNG firm Tellurian, the developer of the Driftwood LNG project in Louisiana, said it had signed a deal...