Tellurian executive chairman Charif Souki
Tellurian suffers Driftwood LNG setbacks
Cancellation of a bond sale and termination of SPAs spell trouble for the project
Fresh doubts have emerged over LNG developer Tellurian’s Driftwood export project on Louisana’s Gulf coast after two separate setbacks in late September. The Nasdaq-listed firm’s share price has crumbled from around $4.50/share in early September to lows of under $2.30/share in October. First, the company cancelled a $1bn high-yield bond sale, having struggled to attract investors even after sweetening the terms. Second, it emerged that ten-year SPAs with Shell and trader Vitol for a combined 6mn t/yr of LNG from Driftwood had been terminated. This volume represents two-thirds of the offtake Tellurian had contracted from the first phase of the project via deals signed last year. The company
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