US LNG developer Tellurian sends production workers home amid sale talks

US LNG developer Tellurian sends production workers home amid sale talks

 Reuters Wed, May 1, 2024, 12:58 PM CDT1 min read

(Reuters) -U.S. liquefied natural gas (LNG) developer Tellurian Inc. has sent home more than a dozen workers from its upstream gas production business, according to three people familiar with the matter.

The Houston-based company has been holding talks with potential buyers to sell its Haynesville shale gas business to raise capital for its proposed Driftwood LNG export plant.

Tellurian has said it was evaluating several bids for the property, and the people familiar with the matter said the firm expects to make a decision in the coming weeks. It could not immediately learned what companies held talks.

In February, Tellurian officials said it is exploring the sale of its Haynesville upstream business to raise capital for its Driftwood LNG project. Weak natural gas prices could reduce the value Tellurian could get for its asset, analysts have said.

The gas production business could be worth up to $365 million, analysts have estimated. However, U.S. natural gas prices have fallen significantly from 2022 levels and traded on Wednesday at about $1.94 per million British thermal units (mmBtu) down from an average of $6.50 per mmBtu for 2022.

(Reporting by Curtis Williams in Houston and Tanay Dhumal in Bengaluru)

 

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Deal discussions: As Bloomberg reports, Pacific Energy is in talks with Tellurian Inc. and NextDecade Corp. for natural gas cargoes from planned export terminals along the U.S. Gulf Coast. The talks in part involve Tellurian’s proposed Driftwood LNG project in Louisiana, which has yet to attract the necessary financial backing to get it off the ground and has hired a financial adviser to explore a sale of assets. Pacific is a subsidiary of Indonesian tycoon Sukanto Tanoto’s RGE Pte Ltd. Bloomberg has the full story.

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