Tellurian trims net loss in Q1

US natural gas company Tellurian said May 3 it had a net loss in Q1 2023 of $27.5mn, an improvement over the $66.6mn loss it recorded in the same period a year ago.

Revenue from natural gas sales increased to $50.9mn from $25.9mn in Q1 2022 as total natural gas production from Tellurian’s assets in the Haynesville basin rose to 19.3bn ft³ from 6.1bn ft³.

In a corporate presentation accompanying its financial results, Tellurian said it had extended through 2023 a limited notice to proceed issued last year to Bechtel, its EPC contractor on the Driftwood LNG project.

Since commencing site construction activities in April 2022, Tellurian said, Bechtel has driven more than 30% of the piles required for the 11mn metric tons/year first phase of Driftwood and completed foundation work for Plant 1 compressors.

Upcoming activities will include the completion of piling work for Plant 1 and the LNG storage tanks, continued foundation work and constructing marine offloading facilities.

During the quarter Tellurian executed a letter of intent (LOI) related to the sale and leaseback of the Driftwood site and received US regulatory approval for its Driftwood Line 200 & 300 pipeline projects, which it said provided a more “cost-efficient and environmentally-friendly option” for delivering feed gas to Driftwood LNG and other natural gas markets along the Gulf Coast.

“Tellurian continues to add value through natural gas production and sales and the construction of Driftwood LNG,” CEO Octavio Simoes said. “With our development contributions and taking into account the land sale and leaseback contemplated by our recent LOI, we have invested or received commitments for nearly $2bn of the project costs, and we continue discussions with partners who want to join us in delivering much needed liquefied natural gas to the world.”

At the end of Q1 2023, Tellurian reported total assets of about $1.3bn, including some $150mn of cash and cash equivalents.