Woodside Energy Acquires Tellurian for $1.2 Billion to Expand LNG Ambitions
Australia's Woodside Energy has entered into a definitive agreement to acquire U.S. LNG developer Tellurian, including the Driftwood LNG project, for $1.2 billion. This acquisition, through an all-cash payment, aims to strengthen Woodside's position in the global LNG market and further develop the Driftwood project.
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Australia's Woodside Energy announced on Monday that it has entered a definitive agreement to acquire U.S. liquefied natural gas developer Tellurian for $1.2 billion. The acquisition includes Tellurian's U.S. Gulf Coast Driftwood LNG project.
The transaction involves an all-cash payment of approximately $900 million, or $1 per share of outstanding Tellurian common stock, representing a more than 75% premium to Tellurian's last closing price. Woodside's CEO, Meg O'Neill, stated that the acquisition positions Woodside as a global LNG powerhouse, adding considerable value to its existing 10 metric tonnes per annum of equity LNG in Australia.
Tellurian has faced multiple setbacks with the Driftwood LNG project, including the cancellation of some LNG supply deals. However, Woodside aims for a final investment decision for Phase 1 by the first quarter of fiscal year 2025, leveraging its global LNG expertise and existing relationship with EPC contractor Bechtel.
(With inputs from agencies.)