Woodside Energy to Acquire Tellurian in $1.2 Billion Deal

Woodside Energy has agreed to purchase U.S. liquefied natural gas developer Tellurian, including its Driftwood LNG export project, for $1.2 billion. This acquisition strengthens Woodside’s position in the global LNG market and aids Tellurian’s financial challenges. The deal includes a $900 million cash purchase of Tellurian's common stock.

Woodside Energy announced on Monday its decision to acquire U.S. liquefied natural gas (LNG) developer Tellurian for $1.2 billion, including debt. The acquisition includes Tellurian's Driftwood LNG export project on the U.S. Gulf Coast, potentially bolstering the United States' standing as the leading global producer of LNG by securing the completion of Tellurian’s 27.6 million metric ton per annum facility in Lake Charles, Louisiana.

The agreement also details a $900 million cash purchase of Tellurian’s common stock at $1 per share, which represents over a 75% premium to the firm's last closing price. This acquisition provides Woodside access to a fully authorized project amid the Joe Biden administration's pause on approvals for new LNG exports to non-free-trade-agreement countries.

Woodside CEO Meg O'Neill stated that this transaction will elevate Woodside into a global LNG powerhouse, adding a scalable U.S. LNG development opportunity to the company’s existing equity projects in Australia. This deal also offers a solution to Tellurian’s financial difficulties, providing immediate cash and aiding the ongoing search for financial partners to fund the Driftwood project.