Woodside buys Tellurian for $900m

By Aya Anwar On Jul 22, 2024

Woodside Energy Group Ltd. is set to buy Tellurian Inc., a troubled US LNG export project developer, for approximately $900 million. The deal, which involves paying around $1 per share in cash, also includes the proposed US Gulf Coast Driftwood LNG project.

As Australia’s largest oil and gas producer, Woodside aims to strengthen its LNG supply portfolio through this acquisition. Consequently, the company is positioning itself to become a global LNG leader.

Woodside plans to finalise the first phase of the Driftwood project by early 2025, with the potential to expand its export capacity to 27.6 million tons annually. However, Tellurian has struggled since its 2016 inception, encountering difficulties with the Driftwood project and losing key contracts due to market volatility.

In response, Woodside intends to bring in partners and sell about 50 per cent of the Driftwood project. Therefore, the purchase is expected to be completed in the fourth quarter of this year.

Attribution: Bloomberg

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