Tellurian Raises $35mn in Share Sale

Tellurian Energy, the US firm developing the Driftwood LNG export project in Louisiana, has raised $35mn from the sale of shares to institutional investors, it said on July 22.

The offering should close on or around July 24 and will net $32.5mn after expenses, Tellurian said. Roth Capital Partners is acting as a placement agent.

Driftwood LNG aims to produce up to 27.6mn mt/yr of LNG in phases. Tellurian has secured all necessary permits to begin construction, but is yet to take a final investment decision following long delays. 

Most recently the project suffered a setback in May when a preliminary deal for India's Petronet to take its 5mn mt/yr of its LNG expired without the pair finalising a supply contract. That agreement has now been renewed until the end of December, however, sources told Reuters on July 21.

Neither Petronet nor Tellurian have confirmed this: Tellurian declined to comment, while Petronet did not reply to NGW. The deal's revival comes after US Secretary of Energy Dan Brouillette held a virtual meeting on July 17 with Indian oil minister Dharmendra Pradhan. 

Tellurian did not say what it would use proceeds from the share offering for. The company laid off 70% of its workforce in March and swung to a net loss of $40.7mn in the first quarter.