U.S. liquefied natural gas exporter Tellurian is looking for Middle East investors for its planned $30 billion Driftwood LNG project, and looks to finalize its investment decision by July 1, Kallanish Energy learns.
“We are looking forward to bringing in partners as shareholders in the project, who will then receive their LNG at the cheapest rates in the world for LNG out of the U.S.,” Tellurian senior vice president for Marketing Amos Hochstein told The National on the sidelines of the Middle East Petroleum & Gas Conference in Dubai.
“We are talking to those partners now,” he said, declining to identify potential investors.
Tellurian’s Driftwood LNG is developing an LNG production and export terminal on the west bank of the Calcasieu River, south of Lake Charles, Louisiana. Once finished, the terminal will be able to export up to 27.6 million tonnes per year (Mtpa) of LNG worldwide.
U.S. regulators in January issued a final environmental impact statement for the Driftwood LNG export terminal, moving the firm closer to a final investment. The company hopes to begin LNG export operations by 2023 and reach full operation by 2026.
Hochstein said 60% of the project will be held by the company’s partners and stakeholders, and a $500 million investment would translate to a 3.6% share in the project.
It will allow the stakeholder to lift 1 Mtpa of LNG for 15 years at the cost of roughly $4 per million Btus.
The ability to trade cheaper LNG around the world at different times will be the main attraction for the Middle Eastern investors with the financial capability to invest in the project, Hochstein told The National.
This post appeared first on Kallanish Energy News.