Tellurian, the US company developing the 27.6-mtpa Driftwood LNG export facility, closed the agreement with Rockcliff Energy Operating to acquire Haynesville assets in Louisiana for $85.1 million.
The assets include approximately four million cubic feet per day of natural gas production, approximately 1.3 Tcf of gas resource, and approximately 138 drilling locations, which Tellurian believes will be able to be produced and delivered to market for an estimated $2.25 per mmBtu.
The assets are 100 percent held by production and 92 percent operated, allowing Tellurian to control the pace of development for its multi-year drilling inventory, the company said on Thursday.
Tellurian’s president and CEO Meg Gentle said, “Acquisition of natural gas producing acreage in the core of the Haynesville provides the foundation for a growing portfolio of assets that we expect can produce LNG for a cost of $3.00 per mmBtu, FOB U.S. Gulf Coast, when Driftwood LNG begins operations in 2022.”
The company has recently signed four deals totaling $15.2 billion for the engineering, procurement and construction (EPC) of the proposed Driftwood LNG project with Bechtel.
The project including 20 liquefaction units, each having an expected production capacity of 1.38 million tons per year of LNG and three 235,000 cubic meter storage tanks as well as three marine loading berths, is set to be constructed in four phases.