LNG

Tellurian Inc., the owner of the Driftwood LNG export plant in Louisiana that has sealed supply deals with commodities trading firms Gunvor and Vitol, is transferring the listing of its own shares from the Nasdaq to the NYSE American, formerly known as the American Stock Exchange (AMEX) and now the third-tier exchange for US investors.

“Transferring our stock listing to the NYSE American allows us to leverage the exchange’s prestigious trading platform for our shareholders’ benefit,” said Tellurian Executive Chairman Charif Souki.

Tellurian said it expected its common stock to begin trading on the NYSE American on November 2, 2021 and will remain under the current ticker symbol “TELL”.

Trading of Tellurian shares on Nasdaq was expected to end at close of business on November 1, 2021.

The Houston, Texas-based company is moving towards the LNG plant construction phase after signing the Gunvor and Vitol LNG sales agreements in late May and early June 2021 for a combined 6 million tonnes per annum of cargoes from the Driftwood facility.

Each of the agreements is for a period of 10 years with the supply indexed to a combination of the Japan-Korea Marker for Asian spot cargoes and the European benchmark Dutch Title Transfer facility (TTF) price.

The engineering, procurement and construction contract has already been agreed with Bechtel Inc., the leading global builder of LNG export facilities.

The Driftwood plant with production capacity of around 27 MTPA and will be built on the west bank of the Calcasieu River, just south of Lake Charles.

Reasoning

In announcing the switch from Nasdaq to the NYSE American, Tellurian Chairman Souki said it comes at a time of “global natural gas shortages” and recent “history-making” prices

“This indicates the pressing need for additional liquefaction export capacity in the United States,” added Souki.

“Tellurian is poised to contribute to America’s status as an energy superpower, having achieved both regulatory permits and commercial success for Driftwood LNG phase one development,” he explained.

“We have turned our focus to putting together a world-class banking group and have started site preparation, in advance of giving our partner Bechtel notice to proceed with construction expected in the first quarter 2022,” stated Souki.

The Nasdaq and the NYSE American have different stock trading profiles.

Nasdaq (the National Association of Securities Dealers Automated Quotations) holds a higher trading volume per day than any other stock exchange in the world.

Nasdaq joined forces with AMEX in 1998 to create the Nasdaq-Amex Market Group. However, the merger was short-lived and the AMEX regained its independence in 2004.

Now called the NYSE American, the exchange includes the second-largest options trading market, though is now mainly regarded as a platform for small-cap and mid-cap stocks and derivatives.

“We’re excited to welcome Tellurian as it transfers to NYSE American and joins our community of innovators and disruptors,” said John Tuttle, Vice Chairman and Chief Commercial Officer of the NYSE Group.

“We look forward to working with Tellurian as it supplies the world with a reliable, clean energy supply,” added Tuttle.