WOODSIDE Energy is set to become a world heavyweight in the liquified natural gas (LNG) market following its US$900 million acquisition of U.S. company Tellurian.
The deal includes US Gulf Coast Driftwood LNG development opportunity.
In a statement issued on Monday 22 July, Woodside CEO Meg O’Neill said the acquisition of Tellurian and its Driftwood LNG development opportunity positions Woodside to be a global LNG powerhouse.
“It adds a scalable US LNG development opportunity to our existing approximately 10 Mtpa of equity LNG in Australia. Having a complementary US position would allow us to better serve customers globally and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins.
“The Driftwood LNG development opportunity is competitively advantaged. Woodside expects to leverage its global LNG expertise to unlock this fully permitted development and expand our relationship with Bechtel which is the EPC contractor for both Driftwood LNG and our Pluto Train 2 project in Australia.
“Through this acquisition, we are delivering on our strategy to thrive through the energy transition. Woodside believes that LNG will play a key role in the energy transition and is well positioned to deliver the energy the world needs while delivering significant value to our shareholders.”
Woodside will acquire 100% of Tellurian Inc shares in a move that has been approved by Tellurian’s Board of Directors with a recommendation that shareholders approve the transaction.
The deal includes the fully permitted, pre-FID Driftwood LNG development opportunity, proposed Driftwood pipeline, and additional 780-acre Site II for future optionality.
The current Driftwood LNG development plan includes five LNG trains through four phases, with a total permitted capacity of 27.6 Mtpa.
The foundation development includes Phase 1 (11 Mtpa) and Phase 2 (5.5 Mtpa) with more than $1 billion of expenditure incurred to date, with site construction underway.
