Woodside Power Group Ltd is buying all of the issued and excellent widespread inventory of Tellurian, together with its owned and operated U.S. Gulf Coast Driftwood LNG improvement challenge.
The consideration for the transaction is an all-cash cost of roughly $900 million, or $1.00 per share of excellent Tellurian widespread inventory. The implied enterprise worth is roughly $1.2 billion, Woodside stated in a press release.
Driftwood LNG is a completely permitted, pre-final funding resolution (FID) improvement alternative positioned close to Lake Charles, Louisiana. The present improvement plan includes 5 liquefied pure fuel (LNG) trains by means of 4 phases, with a complete permitted capability of 27.6 million metric tons each year (mtpa).
- Advertisement -
The muse improvement consists of Part 1 (11 mtpa) and Part 2 (5.5 mtpa). Woodside stated it’s concentrating on FID readiness for Part 1 of the Driftwood LNG improvement alternative within the first quarter of 2025.
The event is absolutely permitted and has a legitimate non-free commerce settlement (FTA) export authorization. The event additionally just lately obtained an extension of its Federal Power Regulatory Fee (FERC) authorization, in keeping with the assertion.
Development at Driftwood has began, with pilings for Trains 1 and a pair of full, basis work in progress and pilings underway for the LNG tanks. The progress on floor work reduces the danger to the engineering, procurement, and building (EPC) timeline and value, Woodside famous.
“The acquisition of Tellurian and its Driftwood LNG improvement alternative positions Woodside to be a world LNG powerhouse,” Woodside CEO Meg O’Neill stated within the assertion. “It provides a scalable US LNG improvement alternative to our present roughly 10 mtpa of fairness LNG in Australia. Having a complementary US place would enable us to raised serve clients globally and seize additional advertising optimization alternatives throughout each the Atlantic and Pacific Basins”.
“The Driftwood LNG improvement alternative is competitively advantaged. Woodside expects to leverage its world LNG experience to unlock this absolutely permitted improvement and increase our relationship with Bechtel which is the EPC contractor for each Driftwood LNG and our Pluto Practice 2 challenge in Australia,” O’Neill continued.
“Via this acquisition, we’re delivering on our technique to thrive by means of the power transition. Woodside believes that LNG will play a key position within the power transition and is properly positioned to ship the power the world wants whereas delivering vital worth to our shareholders,” she concluded.
The transaction is topic to satisfaction of customary situations precedent, together with upkeep of validity for present authorizations, corresponding to with the Division of Power (DOE) and FERC, Tellurian shareholder approval, regulatory approval, and different approvals.
In reference to entry right into a binding settlement to amass Tellurian, Woodside will present a mortgage to Tellurian of as much as $230 million to make sure Driftwood LNG website exercise and de-risking actions preserve momentum previous to completion of the transaction, in keeping with the assertion.
The mortgage is secured by a primary precedence lien over the borrower’s belongings topic to customary exclusions. The most recent maturity date for the mortgage is December 15 or the date of transaction completion.
To contact the writer, e-mail rocky.teodoro@rigzone.com
What do you assume? We’d love to listen to from you, be a part of the dialog on the
Rigzone Power Community.
The Rigzone Power Community is a brand new social expertise created for you and all power professionals to Converse Up about our business, share information, join with friends and business insiders and interact in an expert neighborhood that may empower your profession in power.
