Page 10 - GLNG Week 08 2023

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US LNG producer Tellurian reports

fourfold increase in production

US HOUSTON-BASED liquefied natural gas Construction also began in the fourth quar-
(LNG) producer Tellurian reported on Febru- ter for its Driftwood LNG terminal in Louisi-
The company increased ary 22 a fourfold increase in quarterly natural ana. The liquefaction facility has been rocked by
its natural gas gas production as demand soared following delays but CEO Octavio Simoes told Reuters that
production to around Western sanctions against Russia for its invasion it is now scheduled to deliver its first gas output
225mn cubic feet of Ukraine. in 2026. The company has already invested $1bn
(6.37mn cubic metres) The company increased its natural gas pro- in the liquefaction terminal.
per day in the fourth duction to around 225mn cubic feet (6.37mn The company is partnering with Bechtel
quarter compared with cubic metres) per day in the fourth quarter com- Energy for the construction of the facility. How-
55 mmcf (1.56 mcm) pared with 55 mmcf (1.56 mcm) per day in the ever, the facility has experienced a rocky road
per day in the previous previous year. As a result, adjusted core earnings after announcing the termination of three sale
year. leaped to $80mn, compared with $13.3mn in and purchase agreements (SPAs) last September.
2021. It was a strong quarter across the industry, The deals had been signed in the summer of
with US natural gas prices skyrocketing 18% year 2021 and included two with Shell LNG for a total
on year on average. of 3mn tonnes per year and one with commodi-
Tellurian ended the fourth quarter with ties trader Vitol for 3mn tpy.
$474.2mn of cash and cash equivalents after pro- In February, Simoes revealed that the com-
ducing 47.3bn cubic feet (1.34bn cubic metres) pany is holding discussions with the Indian gov-
of natural gas during the year across its natural ernment and oil companies for investments in
gas assets that include 27,689 net acres (11,205 the Driftwood terminal. India is in the midst of
hectares), 143 production wells and estimated switching from coal to natural gas and increasing
proven reserves of 445 bcf (12.6 bcm). gas distribution networks in cities. ™

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