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

BP, PetroChina book capacity at Dutch Gate LNG terminal

BP and a unit of PetroChina have agreed to book long-term capacity at the Dutch Gate LNG import terminal,...

TotalEnergies releases Mozambique LNG report

French energy giant TotalEnergies on Tuesday released a report regarding the humanitarian situation in the province of Cabo Delgado,...

LNG carrier Golar Gandria sold for demolition

Floating LNG player Golar LNG has sold its 1977-built LNG carrier, Golar Gandria, for demolition, according to brokers. The 125,000-cbm...

More News Like This

Tellurian hires CFO as it works to secure Driftwood LNG financing

US LNG firm Tellurian said it had appointed investment banker Simon Oxley as its new chief financial officer to...

Tellurian expects first phase of Driftwood LNG to cost $14.5 billion

US LNG firm Tellurian is now expecting the development costs for the first phase of its Driftwood LNG export...

Tellurian updates on Driftwood LNG work

US LNG firm Tellurian and compatriot engineering and construction giant Bechtel are moving forward with the initial construction work...

NextDecade gets OK from US FERC for Rio Grande LNG

The US Federal Energy Regulatory Commission (FERC) has reaffirmed its approval for NextDecade's proposed Rio Grande LNG export terminal...