Woodside has announced its agreement to acquire Tellurian, including its US Gulf Coast Driftwood LNG project. The acquisition is valued at US$1 per share, or a cash payment of US$900 million, resulting in an enterprise value of approximately US$1.2 billion when considering working capital and debt.
The core asset in this acquisition is the Driftwood LNG project, situated near Lake Charles, Louisiana. The current development plan for Driftwood LNG includes five LNG plants across four phases, with a total permitted capacity of 27.6 million tonnes per annum. The foundation development comprises two phases: an 11 Mtpa Phase 1 and a 5.5 Mtpa Phase 2.
Woodside’s decision to acquire Tellurian is seen as opportunistic, marking the first time a major portfolio player has taken full strategic control of a US project. Previously, companies have only taken strategic non-operated positions. This move indicates Woodside’s desire to control its own destiny by managing one of the best remaining LNG development sites on the Gulf Coast. The Driftwood LNG project has Federal Energy Regulatory Commission approval and a non-free trade agreement approval, which is set to expire in 2026 but has a strong chance of extension.
Woodside has consistently expressed its intention to expand its US LNG footprint, and this acquisition enhances portfolio diversity by reducing reliance on its existing Australian LNG business. Additionally, it adds a new option to a growth portfolio that currently includes Browse, Greater Sunrise, and the Calypso resource in Trinidad & Tobago.
This strategic acquisition signifies Woodside’s commitment to strengthening its position in the global LNG market and capitalising on the opportunities presented by the Driftwood LNG project.
For a detailed analysis of the Tellurian acquisition and the Driftwood LNG project, refer to the comprehensive LNG contract data within the Lens Gas & LNG data analytics platform.
For more information visit www.tellurianinc.com
