On July 19, Tellurian’s stock was at $3.36. Nevertheless, in the past two days, it is gaining momentum, as stock is currently at $3.88 in the pre-market, resulting in a 15.5% gain. Tellurian terminated $500 million investment agreements with TotalEnergies on Driftwood Liquefied Natural Gas production and export terminal in Louisiana.
According to Tellurian, the agreements got terminated as they were not relevant to the commercial agreements that Driftwood signed with other companies. Hence, the dismissal of the share purchase and equity contribution agreement resulted in the expiry of the LNG agreement. The delays in investment decisions are due to the insufficient number of customers signing long-term deals essential to finance the multibillion-dollar facilities.
Earlier this year, Tellurian made ten-year agreements with commodity traders Gunvor Group and Vitol to trade three million tons per annum of LNG. The deals are expected to generate over $24 billion in income over ten years, based on current prices. As a matter of fact, Tellurian plans to prepare the Driftwood facility for construction in the second half of 2021.
Since 2009 Trevor has been eager to know the causes of financial crises. Right now he is actively searching for the next crisis which will decide the fate of the middle class in the Americas and Europe. We wish him good luck in his research.