Tellurian Inc announced that an affiliate of Bechtel Oil, Gas and Chemicals, Inc. (Bechtel) has made a $50 million zero coupon preferred equity investment in Tellurian which has an implied Tellurian common share price of $8.16 per share.
Brendan Bechtel, Chairman and CEO of Bechtel Group, Inc. said, “Tellurian management and Bechtel have worked together for many years and we look forward to continuing our success as equity partners.”
President and CEO Meg Gentle added, “Bechtel and Tellurian management have constructed 55 million tonnes per annum (mtpa) of liquefaction capacity together on various projects and have formed a respected and productive relationship. We are fortunate to have such strong strategic partners including Bechtel, GE and Total and look forward to breaking ground at Driftwood LNG in 2019.”
In November 2017, Tellurian and Bechtel signed four fixed price, lump sum turnkey agreements totaling $15.2 billion for EPC of Driftwood, the ~27.6 mtpa liquefied natural gas (LNG) export facility proposed near Lake Charles, Louisiana.
Alasdair Cathcart, Bechtel OG&C President said, “We have dedicated our talent and innovation to design Tellurian’s LNG liquefaction program. Today’s investment reinforces our long-term partnership with Tellurian and our mutual commitment to deliver the next wave of low-cost LNG.”
Bechtel is a global leader in engineering, procurement and construction of LNG facilities, having delivered 41 LNG trains on 16 projects in 10 countries, production on Bechtel-built facilities accounts for about one-third of global LNG capacity.