Tellurian is exploring the sale of its Haynesville upstream business, the liquefied natural gas (LNG) firm said on Tuesday, as it looks to raise capital for its Driftwood LNG project.
The company has been trying to develop a 27.6 million metric-tons-per-annum LNG plant, which has suffered multiple delays, in Lake Charles, Louisiana, and earlier said it sought help with balance sheet management and commercial structures.
“By unlocking the full value of these high-quality assets, we aim to substantially reduce our debt, further reduce our general and administrative expenses, and provide additional cash, enabling us to develop Driftwood LNG,” CEO Octávio Simões said.
Tellurian ousted its chairman and co-founder Charif Souki late last year after auditors raised doubts about the company’s ability to cover future expenses.
At an investor presentation last year, the company had said it could sell the first six months’ worth of its LNG output to help finance the Driftwood project.
The company said it has asked its financial advisor, Lazard, to explore opportunities for the sale.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shailesh Kuber)