Tellurian says Driftwood LNG deals with Shell, Vitol scrapped
23/09/2022 17:25
Sept 23 (Reuters) - Tellurian Inc TELL.A lost two of
its biggest potential customers after the U.S. liquefied natural
gas developer disclosed scrapped LNG supply deals with Shell Plc
SHEL.L and Vitol SA on Friday.
Tellurian's shares, halted multiple times after the
disclosure on Friday, were last down about 20%.
The company announced the canceled deals a few days after
withdrawing a $1 billion high-yield bond sale that would have
funded the initial construction of its proposed multi-billion
dollar Driftwood LNG plants in Louisiana.
Houston-based Tellurian said Shell had delivered it a notice
to cancel its agreement to purchase LNG from Tellurian's two
Driftwood LNG export plants.
Tellurian also said it sent a termination notice to global
energy trader Vitol related to their separate Driftwood LNG
agreement.
Tellurian would have sold 3 million tonnes per annum (mtpa)
of LNG each to Shell and Vitol for 10 years from its 27.6-mtpa
Driftwood plants as part of the separate deals signed in 2021.
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"For Driftwood, (the scrapped bond offering) puts in
jeopardy the financial ability to deliver gas on the schedule
that we were hoping to stick to," Charif Souki, Tellurian's
executive chairman and natural gas veteran, said in a YouTube
video on Tuesday.
(Reporting by Ruhi Soni in Bengaluru; Editing by Maju Samuel)
((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))