LNG

US major Chevron Corp., a key operator of LNG export plants in Australia and Africa, has reduced its capital and exploratory spending program to $15 billion, at the lower end of earlier guidance of up to $17Bln, while ExxonMobil Corp. has also modified its six-year investment plan.

Tellurian Inc. has delayed as expected its scheduled start of construction of the proposed Driftwood LNG export plant on the west bank of the Calcasieu River, south of Lake Charles in Louisiana, until 2021 and will study the economics of its Permian Basin feed-gas pipeline.

Tellurian Chief Executive Meg Gentle said the Houston company is lean, resolved and focused on delivering the Driftwood LNG export project near Lake Charles in Louisiana.

Tellurian Inc., the developer of the US Driftwood project near Lake Chares, has raised some additional institutional investor funds to give it more time to secure offtake deals such as one proposed with Indian company Petronet LNG.

Tellurian Inc., the developer of the Driftwood LNG export project in Louisiana,  said it intended to reduce corporate spending and reorganize financing for its 2019 term loan as it prepares for uncertain market conditions.

Tellurian Inc., the developer of Driftwood LNG project on the US Gulf Coast and whose executives were in India pitching for an investment by Indian company Petronet, posted a 20 percent increase in 2019 net losses as the development and marketing process continued.

Tellurian, the developer of the Driftwood LNG export plant near Lake Charles in Louisiana, is proceeding with its plans that now may include a fourth pipeline as it posted a larger quarterly net loss and gave more details of its costings and partnership plans.

The company said its first-quarter net loss widened to $34.12 million compared with $25.18M in the same three months of 2018.

Revenues was reported as $4.95M versus $6.80M in the same three months a year ago as Tellurian ended its first quarter with around $88.3M of cash and cash equivalents and about $57.3M of debts.

“Tellurian has a strong balance sheet consisting of approximately $384M in assets,” noted the company.

Tellurian estimates that its Driftwood LNG export plant proposed for 1,000-acre in Calcasieu Parish in Louisiana will cost around $28 billion, including construction costs, transaction expenses and contingencies, though excluding interest costs.

It intends to produce 27.6 million tonnes per annum at the Driftwood plant from 2023.

The facility will include up to 20 small-scale liquefaction Trains, three LNG storage tanks and three marine berths.

“We have entered into four lump-sum, turnkey engineering, procurement and construction agreements totaling $15.2Bln with Bechtel Oil, Gas and Chemicals Inc. for construction of the Driftwood terminal,” said the company.

Tellurian included in its quarterly highlights the signing of a heads of agreement with a subsidiary of French major Total for a $500 million equity investment in the project.

The French company also signed up for the right to purchase 1 MTPA of LNG and for a 15-year sales and purchase agreement to acquire an additional 1.5 MTPA at Japan Korea Marker (JKM) prices.

The company additionally furthered the sale of LNG and Driftwood partnership interests by completing preliminary agreements with other potential partners, including Petronet LNG of India.

“Tellurian is now permitted to construct, operate, and export LNG from the Driftwood project and has a fully articulated EPC plan in place with Bechtel,” said Chief Executive Meg Gentle.

“Our 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,” added the CEO.

“We remain on schedule to produce LNG in 2023 and generate $8.00 of cash flow per share after ramp up,” stated Gentle.

Tellurian’s proposed pipelines are expected to consist of three projects, the Driftwood pipeline, the Haynesville Global Access Pipeline and the Permian Global Access Pipeline.

“We are also considering the potential development of a fourth pipeline, the Delhi Connector Pipeline, which would run approximately 180 miles from the Perryville-Delhi Hub in northeast Louisiana to Lake Charles,” explained Tellurian.

The Driftwood pipeline will be a 96-mile large diameter pipeline that will interconnect with 14 existing interstate pipelines throughout southwest Louisiana to secure adequate natural gas feedstock.

Tellurian estimates that the construction costs for the Driftwood pipeline will be $2.3Bln before other expenses.

The Haynesville Global Access Pipeline is expected to run for 200 miles from northern to southwest Louisiana.

The Permian Global Access Pipeline is expected to be 625 miles long and to run from West Texas to southwest Louisiana.

Each of these pipelines is expected to have a diameter of 42 inches and be capable of delivering approximately 2 Bcf/d of natural gas.

“We currently estimate that construction costs will be approximately $1.4Bln for the Haynesville Global Access Pipeline and $3.7Bln for the Permian Global Access Pipeline,” added Tellurian.

Tellurian Inc. said it welcomed the issuing of the order from the US Federal Energy Regulatory Commission granting authorization for its Driftwood LNG export project to go ahead at Lake Charles in Louisiana.

Tellurian Inc., developer of the Driftwood LNG export project in Louisiana, is expecting to have about six customer-partners when it takes its final investment decision for the first phase of the joint venture near Lake Charles that will cost a total of $30 billion.

Tellurian Inc., developer of the Driftwood LNG export project in Louisiana, ended its year with a loss of around $125.7 million, as it made commercial progress on its plant to be constructed near Lake Charles with affiliated pipelines.

Tellurian, listed on the Nasdaq exchange, said it ended the year with $133.7M of cash and cash equivalents and about $57.0 million in debt.

The final environmental impact statement was issued by the Federal Energy Regulatory Commission in January 2019 to develop the liquefaction plant to produce around 27.6 million tonnes per annum of LNG.

Tellurian stands ready to make a final investment decision and begin construction in the first half, with the first LNG expected in 2023.

In its initial trading operations, Tellurian generated $5.9 million in revenue from LNG marketing and around $4.4M from natural gas sales.

It also received a $50 million investment from US energy and LNG engineering company Bechtel, which will organise the building of the plant.

“The company advanced the sale of LNG and Driftwood Holdings’ partnership interests, with approximately 35 customer-partners conducting due diligence,” said Tellurian.

Among other highlights it signed two accords, one with commodities firm Vitol for the supply of 1.5 MTPA of LNG for 15 years and a second with Petronet LNG of India for equity investment in the Driftwood project.

Tellurian additionally closed two open seasons on proposed pipelines, the Permian Global Access Pipeline and the Haynesville Global Access Pipeline, and received non-binding indications of interest for both projects in excess of available capacity.

“Tellurian distinguished itself in the market through our innovative equity interest investment strategy, and by introducing a new pricing benchmark for LNG agreements,” said President and Chief Executive Meg Gentle.

The CEO was referring to pricing being offered to customers on the Platts Japan Korea Marker (JKM) instead of the US benchmark Henry Hub price.

“We recently received our final Environmental Impact Statement for Driftwood LNG and look forward to receiving our Federal Energy Regulatory Commission order to proceed,” added Gentle.