Woodside Energy to buy Driftwood LNG developer Tellurian in $1.2B deal (NYSE:TELL)

Woodside Energy (WDS) said late Sunday it has agreed to acquire liquefied natural gas developer Tellurian (NYSE:TELL) for $1.2 billion in cash, including debt.

Woodside (WDS) said the acquisition of Tellurian (TELL), a developer of 27.6 million metric tons per annum The Driftwood LNG export project in Lake Charles, Louisiana, is making it a “global LNG powerhouse.”

The Driftwood LNG project is fully permitted and recently granted an extension of its permit from the Federal Energy Regulatory Commission; construction has begun, with foundation work completed for Trains 1 and 2, and piling and foundation work underway for the LNG tanks.

Woodside (WDS) said it will provide a loan of up to $230 million to Tellurian (TELL) to ensure that Driftwood LNG site activities continue to gain momentum ahead of the deal’s completion.

Woodside (WDS) said it “expects to leverage its global LNG expertise to unlock this fully permitted development and expand its relationship with Bechtel, the EPC contractor for both the Driftwood LNG project and the Pluto Train 2 project in Australia,” the company said.