US LNG export project developer, Tellurian has set sights on finalizing the Driftwood partnership financing as the Driftwood LNG project secured permits for construction and LNG export.
The company said on Wednesday it has continued to build its integrated global natural gas business during the first quarter of the year.
Tellurian has signed a heads of agreement with Total for a $500 million equity investment in the integrated Driftwood project, for the right to purchase 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) and for a 15-year sales and purchase agreement (SPA) with a right to acquire an additional 1.5 mtpa of LNG at Japan Korea Marker (JKM) prices.
Speaking of the developments during the first quarter, Tellurian’s president and CEO Meg Gentle said, “Tellurian is now permitted to construct, operate, and export LNG from the Driftwood project and has a fully articulated engineering, procurement and construction (EPC) plan in place with guaranteed schedule, performance and cost from Bechtel.”
She noted that the company’s primary focus for the next quarter is finalizing the Driftwood partnership financing.
“Total has committed as the first partner of Driftwood and we expect to execute final agreements with them by mid-June. We remain on schedule to produce LNG in 2023 and generate $8.00 of cash flow per share after ramp up,” Gentle said.
Tellurian ended its first quarter of 2019 with approximately $88.3 million of cash and cash equivalents and approximately $57.3 million in debt. Tellurian has a strong balance sheet consisting of approximately $384.0 million in assets.
Tellurian reported a net loss of approximately $34.1 million, or $0.16 per share (basic and diluted), for the three months ended March 31, 2019.