Woodside shares slip over Tellurian buy
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More news: Shares in Woodside Energy were down 2.3% to $28.44 after the oil and gas major agreed to buy US LNG developer Tellurian, along with its Louisiana-based Driftwood LNG project development, for an all-cash payment of US$900 million ($1.3 billion).
Woodside said it is aiming for the project to be ready for a final investment decision for Phase 1 by the first quarter of fiscal year 2025.
Woodside to buy US LNG company Tellurian for $1.3b
The news: Oil and gas giant Woodside Energy has agreed to buy all shares in NYSE-listed energy firm Tellurian, including its Driftwood LNG project being developed in the US Gulf Coast.
The numbers: Woodside will USD1 ($1.49) per share for Tellurian, translating to an all-cash payment of USD900 million for the company.
The Louisiana-based Driftwood LNG project, which is awaiting a final investment decision (FID), comprises of five LNG trains across four phases, with a total permitted capacity of 27.6 million tonnes per annum (Mtpa).
The context: CEO Meg O’Neill said the Tellurian acquisition would position Woodside to be a global LNG powerhouse, adding a scalable US LNG development opportunity to its existing 10 Mtpa LNG capacity in Australia.
The US LNG company has 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. Woodside said it expects to leverage its global LNG expertise to unlock the fully-permitted development.
What they said: “Having a complementary US position would allow us to better serve customers globally and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins,” O’Neill said.
The source: ASX announcement
