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Liquefied natural gas (LNG) terminal developer Tellurian Inc. has been marketing LNG from its first proposed terminal and has received “positive feedback” from prospective customers, CEO Meg Gentle said.
The Houston-based company’s Driftwood LNG project and associated Driftwood pipeline in Louisiana are still slated to begin operation in 2022. Tellurian made its filing for the project at the Federal Energy Regulatory Commission in March.
“Tellurian continues to consistently execute its plans to build a global natural gas business and has laid the foundation to design, permit, and finance the next world-scale LNG infrastructure in southwest Louisiana,” Gentle said. “We recently began marketing LNG to potential customers and we have received positive feedback and interest in our Driftwood Project, which we expect to produce first LNG in 2022.”
Earlier this year Tellurian Chairman and cofounder Charif Souki told a Japanese audience at an industry conference that the company would sell Japanese customers LNG at a fixed $8/MMBtu beginning in 2023, according to press coverage of his conference presentation.
Cheniere began exporting LNG from its Sabine Pass terminal early last year. With growing exports, the company recently began making money. Tellurian is at the beginning of the road to profitability. The company reported a net loss of $141 million (minus 92 cents/share) per share for the quarter, its first as a publicly traded company.
The net loss includes $22 million of development expenses, which were primarily associated with the Driftwood Project and related regulatory filings; $45 million of general and administrative expenses, which includes $35 million of share-based compensation; and $78 million to impair goodwill that was recognized as a result of the merger with Magellan last February.
Total cash disbursements for the quarter were $42 million, which included one-time payments of $12 million related to engineering, procurement and construction activities, $5 million of merger-related expenses, and $25 million of disbursements in the normal course of business.
As of March 31, Tellurian had $187 million of cash and cash equivalents, including the proceeds from a $207 million investment by France’s Total.