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Tellurian Inc. is trying to be a part of the wave of Gulf Coast LNG builders partnering with exploration and manufacturing (E&P) firms on tolling agreements to boost worldwide publicity, government chairman Martin Houston stated Tuesday.
In a letter to shareholders, the Houston-based firm’s co-founder stated Tellurian’s advertising staff had spent final week assembly with potential prospects and market stakeholders about its Driftwood liquefied pure fuel venture.
Whereas the Division of Power’s (DOE) current directive to pause LNG authorizations have introduced issues for builders, Houston stated “there may be ample demand” out there for future U.S. LNG volumes.
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“There may be additionally curiosity from U.S. pure fuel producers to get publicity to the worldwide fuel markets by tolling fuel via Driftwood,” Houston stated. “We’re pursuing these discussions too.”
Plans for the 27 million metric tons/12 months (mmty) LNG export facility in Lake Charles, LA, had been authorised by FERC in 2019, and restricted development on the power’s foundational infrastructure started in 2022. In the beginning of development, Tellurian had secured agreements for 9 mmty of offtake with buying and selling homes and Shell plc.
Tellurian is at present on the lookout for new fuel consumers and potential fairness companions after its offtake agreements had been terminated. Up to now, it has pivoted between enterprise fashions repeatedly, at occasions providing fairness within the venture or gross sales and buy agreements (SPA) to underpin financing.
Tellurian’s discussions come at a time when E&Ps have more and more cast direct tolling agreements with creating LNG initiatives or partnerships with buying and selling homes to diversify their market publicity.
EQT Corp. has inked tentative agreements for at the least 2.5 mmty in liquefaction capability on the proposed Commonwealth LNG and Lake Charles LNG initiatives in Louisiana and Texas LNG in Brownsville. EQT’s direct LNG export publicity may account for round 4% of its complete present manufacturing, in response to NGI calculations.
Chesapeake Power Corp. has additionally made plans with Gunvor Group Ltd. to produce feed fuel for LNG at Lake Charles LNG and the proposed Delfin LNG venture. Permian Basin-weighted unbiased Devon Power Corp. beforehand signed a tentative settlement for as much as 2 mmty of offtake capability and an undisclosed future stake in Delfin.
Nevertheless, apart from Texas LNG, the entire potential initiatives tapped by E&Ps and buying and selling homes to this point are both impacted by the DOE’s coverage assessment or are awaiting a solution on an export authorization extension.
Houston stated Tellurian’s staff has emphasised that Driftwood is absolutely authorised and value aggressive, which the corporate hopes will give the venture momentum for an accelerated closing funding resolution timeline. Administration advised traders earlier within the month that the agency was aiming for a closing funding resolution and the beginning of main development on Driftwood’s first part by the top of the 12 months.
The venture lately obtained a three-year extension from the Federal Power Regulatory Fee and at present has DOE export authorization. Nevertheless, it could must reapply for a non-free commerce settlement allow in Could 2026.
“The general tone in CERAWeek was bullish for pure fuel and LNG,” Houston stated. “My very own view is that the transition pendulum continues to swing again within the trade’s favor – out of necessity. In fact, there are headwinds too, however we now have an ideal venture, and we intend to ensure it will get constructed.”
The publish Tellurian Courting Pure Fuel Producers In search of LNG Publicity By means of Driftwood appeared first on Pure Fuel Intelligence
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