Debt cliff looms for Tellurian

Question marks over Driftwood LNG project as would-be LNG exporter scrambles to service creditors

US LNG developer Tellurian had spoken optimistically about reaching FID on its landmark Driftwood LNG project this year. In July, French equity partner Total confirmed an investment of $500mn, and in September Indian importer Petronet signed a memorandum of understanding for up to 5mn t/yr. Momentum was starting to build. But progress now looks less certain, ratcheting up investor nerves. During US President Donald Trump’s visit to India in February, Petronet announced it would delay its final decision by a further two months; the new deadline is 31 May. This uncertainty has combined with plummeting spot and oil-linked LNG prices—on the back of the Opec+ failure and Covid-19 impacts on deman