Tellurian Inc. and its wholly owned subsidiary Driftwood Holdings LLC have provided an update on its upstream acquisition and financing strategy. Tellurian began building its upstream portfolio in November 2017 and continues its focus on acquiring core Haynesville shale assets.
President and CEO Meg Gentle said, “Tellurian plans to acquire 15 trillion ft3 of natural gas over the project life as part of our overall integrated strategy for the development of Driftwood Holdings. We are looking primarily in the Haynesville shale and are speaking with many producers, but we have no transaction close to completion at this point. Any asset acquisition would occur at the Driftwood Holdings level and would be financed from proceeds of third-party investments in Driftwood Holdings. We continue to make very good progress in our discussions with third-party investors, expect to execute agreements in Driftwood Holdings over the next few months, and be in a position to close funding of phase one for 11 million tonnes between the third and fourth quarters of 2018.”
Driftwood Holdings will construct and operate a standalone U.S.-based integrated LNG business. Tellurian announced in January that it had engaged Goldman Sachs & Co. LLC (Goldman Sachs) and SG Americas Securities, LLC (Societe Generale) to serve as financial advisors for Driftwood Holdings LLC, a wholly owned subsidiary of Tellurian formed to own and operate Tellurian’s gas producing assets, pipeline assets, and the Driftwood LNG export facility. Tellurian is offering equity interests in Driftwood Holdings at a cost of US$1500 per t in exchange for LNGs at cost.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/12032018/tellurian-updates-timing-and-strategy-for-future-upstream-acquisitions-and-related-financing/