Tellurian ends 2021 poised to meet future LNG demand
US LNG developer Tellurian ended 2021 with cash and cash equivalents of more than $305mn and is well-positioned to take advantage of the emerging energy “super cycle” as it prepares to launch construction of its 27.6mn mt/yr Driftwood LNG project in Louisiana.
“The global economy is in the early stages of an energy super cycle driven by strong demand for natural gas and several years of underinvestment in energy infrastructure,” CEO Octavio Simoes said. “Tellurian is optimally positioned with fully executed market-based LNG SPAs and a permitted project. Bechtel will begin construction of Driftwood LNG in April and we will seek to conclude the financing process shortly thereafter.”
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Through 2021, he said, Tellurian executed sales and purchase agreements (SPAs) totalling 9mn mt/yr of the 11mn mt/yr of liquefaction capacity in Driftwood’s first phase.
On the upstream side, Tellurian put four new Haynesville shale gas wells into production in 2021, increasing proved reserves by about 51bn ft3, to 323.3bn ft3. Natural gas production for the year totaled 14.3bn ft3.
Financially, Simoes said Tellurian maintains a strong balance sheet, with about $621.8mn in total assets. For the year, it generated $71.3mn of revenue from natural gas and LNG sales and reported a net loss of $114.7mn.