Tellurian reports 2017 results
Published by Joseph Green,
Tellurian Inc. began building its global natural gas business in its first year as a public company. Notable Tellurian achievements include:
Attained regulatory milestones for the Driftwood terminal and Driftwood pipeline
- Received authority from the US Department of Energy to export LNG to free-trade agreement nations.
- Completed the pre-filing phase and collectively submitted a formal application with the Federal Energy Regulatory Commission (FERC) to construct and operate the Driftwood terminal and Driftwood pipeline.
- Received a notice of schedule for environmental review from FERC stating that it will issue its final Environmental Impact Statement (EIS) on 12 October 2018, and a Federal Authorisation Decision Deadline on 10 January 2019, allowing Tellurian to make a final investment decision and begin construction of the Driftwood terminal in the first half of 2019.
Completed front-end engineering and EPC agreements for the Driftwood terminal
- Entered into four lump sum turnkey engineering, procurement and construction (EPC) contracts for an aggregate US$15.2 billion with Bechtel for completion of the approximately 27.6 million tpy Driftwood terminal; contracts guarantee performance, timing and cost at US$550 per t, one of the lowest cost liquefaction projects worldwide.
Achieved financial goals
- Closed the reverse merger with Magellan Petroleum Corporation and began trading on the NASDAQ under the ticker symbol TELL; TELL was added to the Russell 2000 Index.
- Issued common stock to Total for US$207 million.
- Raised over US$100 million in a public offering, including underwriter overallotments.
Launched new business strategies
- Initiated an offering of equity in Driftwood Holdings LLC, an integrated LNG business which includes natural gas reserves, pipelines, and export facilities for US$1500 per t of LNG contracted per year.
- Acquired almost 12 000 net acres of natural gas producing assets in the core of the Haynesville shale; targeting delivery of gas for US$2.25/mmBtu to markets in Southwest Louisiana.
- Announced the Tellurian Pipeline Network to expand natural gas supply alternatives for the growing demand in Southwest Louisiana.
- Established initial LNG marketing activities and initiated a six-month time charter for the LNG tanker, the Maran Gas Mystras.
President and CEO Meg Gentle said, “In 2017, Tellurian was able to guarantee its project costs, gain a regulatory scheduling notice, and obtain access to capital markets. By integrating our business, we are recognising the strength of the commoditised LNG market, and we are offering customers the opportunity to share in the benefits of the low-cost structure as our partners. The experienced team at Tellurian is developing asset opportunities representing US$29 billion of near-term investments that will deliver natural gas to the growing LNG hub in Southwest Louisiana and enable exports to global markets.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15032018/tellurian-reports-2017-results/
You might also like
OLT increases regasification capacity
OLT Offshore LNG Toscana has received authorisation to increase its annual regasification capacity from the current 3.75 billion m3/y to approximately 5 billion m3/y.