Tellurian Inc. lost two of its biggest potential customers after the U.S. LNG developer disclosed scrapped supply deals with Shell Plc and Vitol SA on Sept. 23.
Tellurian’s shares, halted multiple times after the disclosure on Sept. 23, were last down about 20%.
The company announced the canceled deals a few days after withdrawing a $1 billion high-yield bond sale that would have funded the initial construction of its proposed multibillion-dollar Driftwood LNG plants in Louisiana.
RELATED:
Tellurian’s Bad Week at Driftwood LNG’s Expense
Houston-based Tellurian said Shell had delivered it a notice to cancel its agreement to purchase LNG from Tellurian’s two Driftwood LNG export plants.
Tellurian also said it sent a termination notice to global energy trader Vitol related to their separate Driftwood LNG agreement.
Tellurian would have sold 3 million tonnes per annum (mtpa) of LNG each to Shell and Vitol for 10 years from its 27.6-mtpa Driftwood plants as part of the separate deals signed in 2021.
“For Driftwood, [the scrapped bond offering] puts in jeopardy the financial ability to deliver gas on the schedule that we were hoping to stick to,” Charif Souki, Tellurian’s executive chairman and natural gas veteran, said in a YouTube video on Sept. 20.
Recommended Reading
ONEOK Completes EnLink Midstream Takeover for $4.3B
2025-02-02 - ONEOK had agreed to acquire the remaining stake in EnLink in November 2024 for $4.3 billion after having acquired the controlling interest a month prior.
ONEOK, MPLX Enter $1.75B JV for Texas LPG Export Terminal, Pipeline
2025-02-04 - ONEOK Inc. and MPLX have entered into agreements to invest $1.4 billion to build a 400,000 bbl/d LPG export terminal in Texas and a $350 million pipeline project.
DT Midstream Closes $1.2B Midwest Pipeline Acquisition with ONEOK
2024-12-31 - DT Midstream acquired three pipelines with more than 3.7 Bcf/d of capacity that span approximately 1,300 miles across seven states.
Elliott Demands Phillips 66 Sell or Spin Off Midstream Biz for $40B+
2025-02-12 - Activist investor Elliott Capital Management disclosed Feb. 11 it has built a $2.5 billion position in Phillips 66 and issued a series of initiatives, including the sale or spinning off of the company’s midstream assets.
Martin Midstream Terminates Merger Agreement Following Pushback
2024-12-29 - Martin Midstream Partners will continue operating as a standalone publicly traded company following termination of its deal to merge with Martin Resource Management Corp.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.