Tellurian reports its 2019 results
Published by Will Owen,
According to its company statement announcing the results, Tellurian Inc. has continued to build its integrated global natural gas business and concluded 2019 with momentum for the commercialisation and development of its first project, Driftwood LNG.
President and CEO Meg Gentle said, “In 2019, Tellurian secured equity partners for the Driftwood project, advanced engineering and site testing, and finalised critical permits, making Driftwood LNG shovel ready for 2020. We plan to complete our financing in the coming months and begin construction on the largest privately funded energy infrastructure project in the US.”
Built commercial momentum
- Established the partnership terms for the Driftwood project by executing final documents with Total Delaware, Inc. and subsidiaries for a US$500 million equity investment in Driftwood Holdings LP, a related purchase of 1 million t of LNG, and a purchase of an additional 1.5 million tpy of LNG from Tellurian’s LNG offtake volumes from Driftwood. Total also agreed to purchase approximately US$200 million of Tellurian common stock, bringing its aggregate investment in the Tellurian portfolio to approximately US$907 million upon a final investment decision for Driftwood.
- Advanced the commercialisation of Driftwood LNG through a Memorandum of Understanding (MOU) with Petronet LNG Limited INDIA, for Petronet and its affiliates to make an equity investment in Driftwood Holdings LP and to purchase up to 5 million tpy of LNG from Driftwood LNG.
Advanced Driftwood project development
- Received the United States Federal Energy Regulatory Commission (FERC) order granting authorisation for the Driftwood terminal and Driftwood pipeline, and the US Department of Energy (DOE) order granting export authorisation to non-free trade agreement countries, concluding the most significant permits required for construction and operation.
- Continued to progress engineering on the Driftwood terminal, completing 28% of engineering with approximately US$150 million invested to date.
- Received FERC approval for Driftwood terminal implementation plans; the Driftwood terminal is in Louisiana and located on approximately 1000 acres with ample laydown area for equipment and deep-water access for shipping.
- Began the FERC pre-filing process for the Permian Global Access Pipeline (PGAP), a 625 mile, 42 in. interstate natural gas pipeline proposed from the Waha Hub in West Texas to near Lake Charles, Louisiana.
Drilled three new operated wells and increased average net production to approximately 38.1 million ft3/d. Tellurian holdings include 10 260 net acres, interests in 67 producing wells and estimated proven reserves of approximately 269 billion ft3 equivalent of natural gas.
Tellurian ended its 2019 fiscal year with approximately US$64.6 million of cash and cash equivalents and approximately US$136.6 million in debt. The company has reported a strong balance sheet consisting of approximately US$382.3 million in assets.
Tellurian reported a net loss of approximately US$151.8 million, or US$0.69 per share (basic and diluted), for the year ended 31 December 2019.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/24022020/tellurian-reports-its-2019-results/
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