October 09, 2024 [Storage Terminals Magazine]- Woodside has successfully completed its acquisition of Tellurian Inc. and its Driftwood LNG development project located on the US Gulf Coast. The transaction, valued at approximately $900 million in cash, saw Woodside acquire all issued and outstanding Tellurian common stock at $1.00 per share. The total implied enterprise value of the acquisition is around $1.2 billion.
As part of this acquisition, Woodside has rebranded the Driftwood LNG development to “Woodside Louisiana LNG.” This under-construction, pre-final investment decision project is located in Calcasieu Parish, Louisiana. It boasts a permitted production and export capacity of 27.6 million tonnes per annum, making it a significant asset in the global LNG market.
Woodside CEO Meg O’Neill described the acquisition as a transformative step for the company, noting that it expands Woodside’s footprint in the US LNG sector and strengthens its ability to serve global markets. “This is a major growth opportunity that significantly expands our US LNG position, enabling us to better serve global customers and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins,” O’Neill said.
She emphasised that Woodside’s expertise in project execution, operations, and marketing positions the company well to advance and unlock the full potential of Woodside Louisiana LNG. With its competitive advantages, including full permitting, completed front-end engineering design, and advanced site civil works, the project is on track for further development.
Woodside is targeting FID readiness by the first quarter of 2025. The company will benefit from the expertise of the experienced Tellurian team and its engineering, procurement, and construction contractor Bechtel, who have already made significant progress in bringing the project to its current stage.
This acquisition marks a new chapter in Woodside’s strategic direction, bolstering its global LNG portfolio and reinforcing its presence in the US energy market.
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