Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Tellurian says Driftwood LNG deals with Shell, Vitol scrapped

Published 23/09/2022, 17:30
© Reuters. FILE PHOTO: The logo of Tellurian Inc is seen in its booth at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan April 4, 2017. REUTERS/Toru Hanai
TELL
-

(Reuters) - Tellurian Inc lost two of its biggest potential customers after the U.S. liquefied natural gas developer disclosed scrapped LNG supply deals with Shell (LON:RDSa) Plc 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.

© Reuters. FILE PHOTO: The logo of Tellurian Inc is seen in its booth at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan April 4, 2017. REUTERS/Toru Hanai

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.

"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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.