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.

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