LNG firm Tellurian considers selling upstream operations

Tellurian, the liquefied natural gas (LNG) company announced that it is considering selling its Haynesville upstream division on Tuesday to raise money for its Driftwood LNG project, according to Reuters.

The company had previously stated that it sought assistance with balance sheet management and commercial structures. The company has been attempting to develop a 27.6 million metric-tons-per-annum LNG plant in Lake Charles, Louisiana, but it has experienced multiple delays.

“By unlocking the full value of these high-quality assets, we aim to substantially reduce our debt, further reduce our general and administrative expenses, and provide additional cash, enabling us to develop Driftwood LNG,” CEO Octávio Simões stated.

Late last year, Tellurian removed its co-founder and chairman, Charif Souki, over concerns expressed by auditors regarding the company’s capacity to pay for upcoming expenses.

The company had stated at an investor presentation last year that it could sell the first half of its LNG output to help fund the Driftwood project.

The business declared that it has asked Lazard, its financial advisor, to look into possible sales opportunities.