A report by Reuters indicated Tulsa’s Williams Companies gave serious thought to acquiring struggling LNG developer Tellurian but came to the conclusion, it was too risky.
It’s what Williams Executive Vice President of Strategy Chad Zamarin admitted in a sit-down interview this week at the CERAweek S&P Global energy conference in Houston.
He explained Williams took a look at opportunities to invest in more LNG projects but what Tellurian’s proposed Driftwood LNG gas export terminal offered wasn’t strong enough in terms of commercial strength.
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Williams (WMB) was looking at opportunities to continue investing in LNG projects, but Tellurian’s (TELL) proposed Driftwood LNG gas export terminal did not have the commercial strength, Zamarin said.
“There is the advantage of it being permitted, it does have a speed to market that is interesting to us, but it does not have the commercial contracts on the demand side,” Zamarin said in the interview.
Williams (WMB) is interested in LNG projects that are already advanced, while newbuild projects like Driftwood are at a disadvantage to expansions of existing plants, Zamarin said.
Tellurian (TELL) said this week it would consider offers for the 27M metric tons/year Driftwood LNG, after unsuccessfully pursuing long-term sales and purchase agreements to finance the project; the stock has dropped 30% since the announcement.
Global energy conference.
Williams (WMB) was looking at opportunities to continue investing in LNG projects, but Tellurian’s (TELL) proposed Driftwood LNG gas export terminal did not have the commercial strength, Zamarin said.
“There is the advantage of it being permitted, it does have a speed to market that is interesting to us, but it does not have the commercial contracts on the demand side,” Zamarin said in the interview.
Williams (WMB) is interested in LNG projects that are already advanced, while newbuild projects like Driftwood are at a disadvantage to expansions of existing plants, Zamarin said.
Tellurian (TELL) said this week it would consider offers for the 27M metric tons/year Driftwood LNG, after unsuccessfully pursuing long-term sales and purchase agreements to finance the project; the stock has dropped 30% since the announcement.