Tellurian gets another loan repayment extension for Driftwood LNG

(Courtesy Tellurian Inc.) An artist's rendering of the Driftwood LNG facility near Lake Charles.

Tellurian has negotiated another four months to pay back an $87.5 million loan, S&P Global Platts reports.

The second extension will give Tellurian until March 23, 2022, as it struggles to secure sufficient commercial support to advance its Driftwood LNG export project in Louisiana, according to a Sept. 21 securities filing.

While commercial discussions among LNG terminal developers have picked up after coming to a virtual standstill during the summer due in large part to the coronavirus pandemic, Tellurian’s prospects for Driftwood remain uncertain.

Investors have shed Tellurian shares, S&P Global reports. With its stock price below $1 for more than 30 consecutive trading days, the company recently received a delisting notice from Nasdaq. It will have additional time for its stock to rise above that threshold before any action is taken.

Tellurian has cut 38% of its staff and scaled back its midstream ambitions, saying it will build only one of four proposed pipelines during the first phase of the Driftwood project if it decides to sanction the U.S. facility. It also has worked on freeing up cash by adjusting its debt obligations.

In March, Tellurian negotiated an 18-month extension of the maturity of an $87.5 million loan that was to come due in May. That deal gave the company until Nov. 23, 2021, to pay back the money. In its latest filing with the Securities and Exchange Commission, Tellurian said it negotiated a further extension to March 23, 2022. As a condition, Tellurian must repay $12 million of the remaining principal immediately.

To date, only France’s Total has signed a firm partnership deal tied to Driftwood, a $500 million investment agreed to in 2019. Talks with India’s Petronet about a potential equity deal are uncertain.

S&P Global Platts has the full story. Read the SEC filing.