Tellurian Inc. has announced that it plans to cut corporate spending and is seeking to reorganise financing for its 2019 term loan.
This action has been prompted by uncertain market conditions that include weak global demand for LNG and low prices.
Meg Gentle, President and CEO of Tellurian, made the following statement: “Given current global financial market conditions and increasing restrictions on travel caused by the onset of Coronavirus, we are taking the steps necessary to focus on preserving the value we have created at Tellurian and Driftwood LNG. To this end we will reduce our corporate overhead to approximately US$6 million per month and have initiated discussions with our lender to extend the maturity of our 2019 term loan due in May 2020.”
Gentle added, “We have just returned from a visit to India where we continued discussions with Petronet and agreed to extend our MOU to 31 May 2020. We continue to see very strong growth in LNG demand from Asia in general, and India in particular, in spite of world conditions. We are highly confident that when travel restrictions are eased, we will be able to finalise several negotiations to complement the Petronet agreement and allow us to reach final investment decision (FID). With the new corporate overhead structure, we have a long runway to execute on our business model.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04032020/tellurian-to-cut-costs-and-exercise-discipline-amid-lng-market-uncertainly/