Woodside to acquire Tellurian for ownership of permitted Driftwood LNG plant

**Woodside Acquires Tellurian for Ownership of Permitted Driftwood LNG Plant**

Australian energy giant Woodside Energy has agreed to acquire Tellurian Inc. for $900 million, giving them ownership of the fully permitted Driftwood LNG plant under a pre-final investment decision (FID) for development in Louisiana. The combined value of the deal, including net debt, is around $1.2 billion.

In making this decision, Tellurian’s executive chairman Martin Houston highlighted the benefits of an immediate cash return over the risks and costs associated with the timeline to FID. Woodside’s CEO, Meg O’Neill, emphasized that this acquisition positions Woodside to become a global LNG powerhouse, adding a scalable US LNG development opportunity to their existing 10 million tonnes per year (tpy) of equity LNG in Australia.

### Key Features of Driftwood LNG

– **Location**: The Driftwood LNG plant is situated near Lake Charles, Louisiana.
– **Phases**: The current development plan includes five LNG trains through four phases. The foundation development includes Phase 1 (11 million tpy) and Phase 2 (5.5 million tpy).
– **Targeted Readiness**: Woodside aims to reach FID readiness for Phase 1 in the first quarter of 2025.
– **Development Costs**: The development costs for Phases 1 and 2 are projected to be between $900 million and $960 million per tonne.

Work on the site has already begun. Construction of foundation development includes completed pilings for Trains 1 and 2, ongoing foundation work, and work on the LNG tank pilings.

### Financial Details

– **Loan**: As part of the agreement, Woodside will provide a loan of up to $230 million to Tellurian to maintain site activity and de-risking activities before the transaction is completed.
– **Other Payments**: The deal includes $50 million for Tellurian’s Series C Convertible Preferred equity shares, $90 million of net debt, $90 million for net working capital adjustment, and $65 million for management and debt change of control costs.

The deal is expected to close in the fourth quarter of this year, subject to customary closing conditions, including approval from Tellurian shareholders and receipt of regulatory approvals.

### Conclusion

This acquisition strategically enhances Woodside’s global LNG presence and further solidifies its position as a leading player in the industry. The addition of Driftwood