Woodside targets 2025 FID after completing Tellurian acquisition
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The news: Oil and gas giant Woodside Energy is targeting a final investment decision (FID) at the Louisiana-based Driftwood LNG project after completing its acquisition of NYSE-listed energy firm Tellurian.
The numbers: Woodside said on Wednesday it had completed the acquisition at USD1 per share for Tellurian, or an all-cash payment of USD900 million ($1.2 billion).
It also renamed the US Gulf Coast-based Driftwood LNG project, which has total permitted capacity of 27.6 million tonnes per annum across five LNG trains, as Woodside Louisiana LNG.
The context: CEO Meg O’Neill said Woodside was targeting “FID readiness from the first quarter of 2025, with the experienced Tellurian team and engineering, procurement and construction contractor Bechtel having completed substantial work to advance the opportunity to this stage.”
She said the oil and gas giant has also received requests from multiple parties to enter the project as a strategic partner.
Woodside said the Tellurian acquisition significantly expands its US LNG position and would enable it to better serve global customers and capture further marketing opportunities across both the Atlantic and Pacific Basins.
Tellurian had been trying to develop the Driftwood LNG plant for several years but warned last year it might not be able to cover operating costs due to continued losses.
The source: ASX announcement
