Woodside has closed the acquisition of Tellurian and its US Gulf Coast Driftwood LNG development for approximately $900m in cash.
Announced in July 2024, the deal saw the Australian energy company acquire all issued and outstanding Tellurian common stock for $1 per share, implying an enterprise value of around $1.2bn. Tellurian has been trading on the New York Stock Exchange (NYSE) American.
Woodside has also announced the renaming of the Driftwood LNG project as Woodside Louisiana LNG.
The development is located in Calcasieu Parish, Louisiana, and is currently under construction. It is a pre-final investment decision (FID) liquefied natural gas (LNG) production and export terminal, with a permitted capacity of 27.6 million tonnes per annum (Mtpa).
Woodside CEO Meg O’Neill said: “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.
“Our acquisition provides a new strategic direction for this development. Woodside’s world class expertise in project execution, operations and marketing means we are well-positioned to unlock the development and generate value.”
O’Neill stated that the front-end engineering design for Woodside Louisiana LNG had been completed, and the site civil works were well advanced.
According to Woodside, the acquisition of Tellurian and its Driftwood LNG project enhances its ability to execute its strategy for thriving in the energy transition. The acquisition is also expected to bolster Woodside’s status as a major independent LNG company and supports its goal of reducing net equity Scope 1 and 2 emissions by the end of this decade.
The Woodside Louisiana LNG project will have five LNG trains and an associated pipeline network. The trains will be constructed in four phases.
Initial development plans include Phase 1, with a capacity of 11Mtpa, and Phase 2, with a capacity of 5.5Mtpa.
