Tuesday, October 15, 2019

Total's Investments in Tellurian Totals $907mln

August 8, 2019

Driftwood LNG’s ideal site for exports. Artist rendition by Tellurian

Tellurian, an integrated global natural gas business firm, announced that it entered into definitive agreements with subsidiaries of Total S.A. for a $500 million equity investment in Driftwood Holdings LP, and related purchase of liquefied natural gas (LNG).

Along with Total’s previously announced agreement to purchase approximately $200 million of Tellurian common stock, Total’s aggregate investment in the Tellurian portfolio will be approximately $907 million at final investment decision (FID) for Driftwood, the NASDAQ-listed company said in its second quarter 10-Q filing.

"We continue to advance negotiations for the sale of LNG and interests in Driftwood Holdings with several counter-parties," it said. The company has secured $75 million term loan for general corporate purposes.

"We have received all major permits required for construction and operation of the Driftwood terminal and pipeline," Tellurian informed.

President and CEO Meg Gentle said, “Total’s commitment and investment in Tellurian has set an international standard for a joint venture partnership that will deliver low-cost U.S. LNG supply to the world beginning in 2023. Tellurian has executed a thorough set of documents and we are using those as a template to secure further agreements with partners. We are preparing to launch the project finance debt syndication which we expect to take the remainder of the year.”

Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline.

It has completed binding open seasons for the Permian Global Access Pipeline (PGAP), the Haynesville Global Access Pipeline (HGAP), and the Delhi Connector Pipeline (DCPL), all resulting in over-subscribed indications of interest.

Tellurian anticipates finalizing precedent agreements and beginning the pre-filing process with the Federal Energy Regulatory Commission (FERC) in the next quarter for PGAP.

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