To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Our Standards: The Thomson Reuters Trust Principles. ISSN 2577-9877 Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. You have 3 free articles remaining. McKinsey uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Last years loss included a $81.1 million impairment of upstream properties. See here for a complete list of exchanges and delays. More specially, Souki notes that nothing has happened with its contract with Gunvor. ISSN 2577-9877 I am not receiving compensation for it (other than from Seeking Alpha). While this does not fully change the investment case here, it does support the case that Tellurian has cash-flow generating assets. WARNING: Any stocks that you feel like buying after discussions with me are your responsibility. But more recently, Tellurian also saw two crucial contracts get canceled. I follow countless companies and select for you the most attractive investments. Our Standards: The Thomson Reuters Trust Principles. Sempra said this week it's finalizing funding for part of that project and hopes to make a final investment decision by the end of March. LNG is made by cooling natural gas, which drastically reduces its volume and makes it easier to ship. Indeed, domestic natural gas prices fell by nearly 20% to $6 MMBtu. ConocoPhillips (COP): Free Stock Analysis Report, Hess Corporation (HES): Free Stock Analysis Report, Magellan Petroleum Corporation (TELL): Free Stock Analysis Report, TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report. 2023 ESG Review. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. This is a simple case of arbitrage. Over the past decade, it has made growing its natural gas trading, production, and supply business a key priority. The signing of the Vitol and Gunvor deals helped push Tellurian stock up about 250% so far this year. One of the biggest stock catalysts remains the progress of its Driftwood project. Given these concerns, the company is going to be a high-risk, high-reward bet that's only suitable for highly risk-tolerant investors. By the start of 2020, several LNG export. Building its highly coveted Driftwood will cost $14 billion. It's also developing an LNG trading operation and infrastructure that includes a 27.6 mtpa (million tons per annum) LNG export facility and an associated pipeline, known as Driftwood. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. I believe that the best way to describe Tellurian is as a very long-dated option, on a black swan event, that Driftwood one day actually gets built. Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. Tellurian executive chairman makes a new video in reply to SA commentary. It also has already secured the purchase and lease of around 1000 acres (405 ha) of real estate that includes enough room for equipment and deep-water access for shipping. This means that investors simply aren't buying into Souki's vision. I wrote this article myself, and it expresses my own opinions. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Total also will purchase about 20 million additional. I have no business relationship with any company whose stock is mentioned in this article. I follow countless companies and select for you the most attractive investments. May 27 (Reuters) - U.S. liquefied natural gas (LNG) developer Tellurian Inc (TELL.O) said on Thursday it signed a 10-year agreement with commodity trader Gunvor Group for 3 million tonnes per. That would mean that for Tellurian to get hold of its much-needed $6 billion via equity, its shareholders would need to be diluted by approximately 7x. High upside energy, commodity, tech, and dividend stocks. DEEP VALUE RETURNS: The only Marketplace with real performance. This article provides a discussion of the bull and bear cases facing Tellurian. Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. I provide a hand-holding service. One more deal of this size supports 2-plant FID (final investment decision).". Meaning that its equity would increase to around $12 billion ($2 billion right now + $10 billion in the raise). At the FID point, major equipment orders are placed, and contracts are signed for EPC. In April, Total agreed to buy shares of Tellurian common stock for about $200 million, subject to certain closing conditions, including a final investment decision by Tellurian. For good reason too. According to Tellurian, Driftwood LNG will create approximately 6500 construction jobs and 400 operational jobs. Tellurian Inc. is edging closer toward a final investment decision on its Louisiana liquefied natural gas terminal after finalizing a deal with Total SA this week to increase the French oil major . I have no business relationship with any company whose stock is mentioned in this article. It has $474.2 million in cash and cash equivalents on hand. Those assets produced 16.9 Bcf of natural gas last year, up from 13.9 Bcf in 2019. All told, the facility would have 20 LNG trains and at least 24.9 million scf (705,000 m3) of storage capacity. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Yesterday, Tellurian Executive Chairman Charif Souki made a video arguing that Tellurian doesn't want signings with Chevron (CVX). Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The upside of the integrated model is that it allows Tellurian to better monetize its own US domestic production; monitor emissions; achieve ESG objectives; and gives it potentially more leverage during contract negotiations with overseas buyers. The partners were to receive LNG from the project. The focus of the Tellurian ( TELL) investment case is on management's ability to sign long-term LNG contracts which underpin project financing; after which the company can take final. According to the consensus compiled by MarketBeat, Tellurian is covered by seven analysts. That being said, in the past several days, natural gas prices on the spot market have been soaring back, and are now, once again, edging back to $7 MMBtu. Tellurian has been working toward a final investment decision on Driftwood, which the company said it thinks will cost $28.9 billion, for years. The agreements had built on TotalEnergies' original $207 million . The concept is largely unproven in the U.S. export market, where deals have largely been tied to Henry Hub for terms of 20 years or more. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. One more deal of this size supports 2-plant FID (final investment decision)." Tellurian has said the first phase of Driftwood would cost about $16.8 billion and produce about 16.5 MTPA of LNG. If you have an ad-blocker enabled you may be blocked from proceeding. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. |, Related topics: Tellurian (NYSE:TELL) remains a highly speculative stock. Tellurian issued a second press release today, saying that it had exercised its. I do all the work of picking the most attractive stocks. High upside energy, commodity, tech, and dividend stocks. Is this happening to you frequently? Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. I am not receiving compensation for it (other than from Seeking Alpha). "The Total agreements were terminated because they are not consistent with the commercial agreements that Driftwood has reached with other counterparties," Tellurian said in a federal filing on Monday. Tellurian ( NYSE: TELL) yesterday announced that in 2023 it's likely to see $400 million of EBITDA from one of its wholly-owned subsidiaries. Deep Value Returns' Marketplace continues to rapidly grow. I am not receiving compensation for it (other than from Seeking Alpha). If you have an ad-blocker enabled you may be blocked from proceeding. what does ymb mean in the last mrs parrish; what are the chances of my dog getting heartworms; chrisfix email address; dr myron wentz covid vaccine; matter dimensions guide; NGI All News Access. Copy and paste multiple symbols separated by spaces. Chairman Souki addresses the matter on a YT video. Tellurian also has its core business! Tellurian Inc.'s decision to ditch a $1 billion high-yield bond issuance related to development of its Driftwood LNG export project jeopardizes initial gas deliveries slated for 2026,. | The company estimates that the 27.6 mmty facility would cost $25 billion to build. Tellurian generated $30.4 million in revenues from natural gas sales, up from $28.8 million in 2019. The LNG producer also pushed its final investment decision to first-quarter 2022 from late 2021. The LNG terminal is expected to cost $12 billion. Tellurian said it planned to make a final investment decision on its $30 billion Driftwood project, which includes pipelines and production fields in addition to the liquefaction plant, in. Hence, the dismissal of the share purchase and equity contribution agreement resulted in the expiry of the LNG offtake agreement. Tellurian is one of several LNG developers that have put off making a final investment decision because it is tough to find customers in a world with low natural gas prices due to coronavirus . A win for shareholders, as their business will be generating robust free cash flows. Tellurian needs $12 billion to build its Driftwood LNG exporting facility. However, the company missed the. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. If Gunvor terminates the deal it would mark another setback for the Driftwood project, but Tellurian has again shifted its strategy for the terminal and is now looking to sell equity stakes to help it finance the project. Tellurian Inc . Plus regular stock updates. Phase 1 will consist of three plants with a combined capacity of 16.5 MTPA and an expected cost of US$16.8 billion. Now, the visitors are greeted to the sight of boats stuck in a sea of invasive green water hyacinth weed. (Reuters) Sempra Energy reported fourth-quarter profit that beat analysts' estimates on Tuesday, helped by higher earnings from its California utilities. Is this happening to you frequently? Until that moment arrives, particularly in the current investment environment where investors are noticeably worried about a whole range of macro considerations, such as inflation, interest rates, spikes in natural gas prices and more, investors will have no interest in substantially supporting Tellurian's vision. can go wrong? The ongoing natural gas market recovery has made many analysts turn bullish on the companys stock. Click here to request a free trial. Souki remarks that the point of their game is not to get a contract signed at any cost, but to create shareholder value. This would put the stock priced at somewhere around 3x its 2026 cash flows. This is not a significant dilution and amounts to less than 4%. See here for a complete list of exchanges and delays. On Nov. 29, the company and former President and CEO Meg. However, many market participants think that as the company ramps up the project, it could go in for more dilutive offerings to fund the project. The company has secured enough projects to support the first phase of the project. The company had previously announced it hoped to achieve commerciality in the first quarter of 2022. The timing of this stock issuance is suspicious, to say the least. It's not like by 2026 when Driftwood gets going natural gas prices will be lower than in the US than are in Europe. Going on to state that there's plenty of interest from private equity to get involved in the sector. | Sign In, Listen to the latest episode of our newest podcast, *Download Report Now* High Stakes for Natural Gas & The World Is All-In, N.A. Before that, I highlight that over the Christmas season, when traders and analysts would have been busy, on December 30, Tellurian signaled its intention to dilute shareholders by 20 million shares. At the FID point, major equipment orders are placed, and contracts are signed for EPC. Per the terms of the deal, TotalEnergies had an option to purchase 1.5 million tons per year of LNG from Tellurian. Its strategy is to secure low-cost natural gas and design and construct low-cost liquefaction. $6 billion from equity. Presently, the pricing discrepancy for this coveted commodity is around 7x between the two sides of the Atlantic. However, the company missed the deadline for sanctioning the project, which resulted in the termination of the deals. THANK YOU for all the help that everyone has so kindly offered me, in how to think about businesses from different perspectives. Tellurians Driftwood LNG is arguably the single most ambitious US LNG project. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Tellurian reported a full-year net loss of $49.8 million (minus 9 cents/share), compared to a net loss of $114.7 million (28 cents) in 2021. Combined, the three SPAs are expected to generate annual revenue of US$1.8 billion and annual EBITDA of just under US$1 billion. I wrote this article myself, and it expresses my own opinions. Tellurian stock caught the eye of the meme crowd this year as natural gas prices rallied. 2 min read. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. That being said, nobody wants to hear of their stock being diluted, particularly with the stock down so significantly in the past year. swan event, that Driftwood one day actually gets built. Click here to request a trial. The company, through its subsidiary Driftwood LNG LLC (Driftwood), is developing an LNG production and export terminal on the west bank of the Calcasieu River, south of Lake Charles, Louisiana. Get them exclusively at Deep Value Returns. Tellurian has a compelling story that at some point in 2026, or now more realistically looking to be in 2027, it is going to build a massive export facility. View Subscription Options Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Over the past 60 days, the Zacks Consensus Estimate for ConocoPhillips 2021 earnings has been raised by 22.5%. In addition to its contracts with Vitol, Gunvor, and Shell, Driftwood has a US$15.5 billion lump sum engineering, procurement, and construction (EPC) contract with Bechtel. Tellurian is a very volatile stock and not one for the faint-hearted. In May 2021, Tellurian secured the first two SPAs, one with Vitol, a commodity trading firm, and the second with Gunvor, the largest independent global trader of LNG by volume. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol "TELL." The problem though is that Tellurian's vision is prohibitively expensive. Tellurian Inc confirmed on Wednesday it still plans to make a final investment decision to build its proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana in 2019: All three were shorter, 10-year deals at prices linked to the Title Transfer Facility and Japan-Korea Marker, making them riskier for lenders. LNG Insight B.Riley analyst Liam Burke is positive on the stock. I provide a hand-holding service. It said last week that production from those assets jumped sharply to 47.3 Bcf in 2022. All rights reserved. Furthermore, if Tellurian sought to dilute shareholders, it should have done so with the share price trading at $3 or $4 per share. And the debt markets would not even consider $1 billion. I wrote this article myself, and it expresses my own opinions. some value. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. info@naturalgasintel.com Tellurian clearly has assets with some value. Please disable your ad-blocker and refresh. Tellurian has an amazing story. | The average target price for the stock is $6.34, which implies an upside of nearly 72 percent. Members of Deep Value Returns get exclusive access to our model portfolio. Shares of the company have outperformed the industry in the past six months. Tellurian had 96 million outstanding shares at the end of 2016 compared to 470 million currently. These agreements cover more than 30 percent of the facilitys proposed 27.6 mtpa capacity. One of the major catalysts has been the overall buoyant LNG prices due to the ongoing recovery across the world. I have no business relationship with any company whose stock is mentioned in this article. Tellurian is being priced as an out-of-the-money option. Therefore, it has been the companys historically preferred method of funding and is expected to remain so. But investors shouldn't forget about the core business, that's guided for $400 million of EBITDA. Why? jamison.cocklin@naturalgasintel.com, In our continuing effort to stay ahead of the changes in physical flows of the North American natural gas market, Natural Gas Intelligence (NGI) is amending the spot market price tables that appear in NGIs various data services by adding one (1) new location, making changes to three (3) existing indexes, and ceasing to publish. Another big fear for investors could be the dilution of their holdings. Copyright 2023 Market Realist. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. | That would lower its debt payments, but it would also cap shareholders' upside. You can seethe complete list of todays Zacks #1 Rank stocks here. Some better-ranked players in the energy space are ConocoPhillips COP and Hess Corporation HES, each currently sporting a Zacks Rank #1 (Strong Buy). The industry leader for online information for tax, accounting and finance professionals. jamison.cocklin@naturalgasintel.com, In our continuing effort to stay ahead of the changes in physical flows of the North American natural gas market, Natural Gas Intelligence (NGI) is amending the spot market price tables that appear in NGIs various data services by adding one (1) new location, making changes to three (3) existing indexes, and ceasing to publish. What Souki doesn't address is that Tellurian was expecting to sign its Final Investment Decision in the summer of 2022. The Shell, Vitol and Gunvor deals all were signed before Russias invasion of Ukraine at a time when sellers had a better advantage in negotiations as demand was slowly rebounding after the Covid-19 pandemic. This is of course if Driftwood ends up getting built at all. Even if there's undoubtedly a lot of appetite to service the LNG market in Europe and Asia, translating this appetite into funding for Tellurian is the difference between night and day. Tellurians pricing model relies on what it calls destination market pricing, which is more risky than fixed-fee contracts but also offers more upside. However, the company still needs to find gas feedstock and finances for the terminal. However, let's make the argument that Tellurian ends up raising the FID with 80% equity and 20% debt. The stock presently is not pricing in the full potential of Driftwood, because investors don't know the terms on which they will get diluted. (Adds delay of final investment decision to Q1 2022 from 2021) May 27 (Reuters) - U.S . Believing that transparent markets empower businesses, economies, and communities, Natural Gas Intelligence (NGI) provides natural gas price transparency and key news, insights and data for the North American energy markets. All quotes delayed a minimum of 15 minutes. 2023 Natural Gas Intelligence. The stock has jumped by nearly 190 percent YTD but is off 30 percent from the highs it reached in June. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Tellurian inked a deal with Shell to supply 3 mtpa from Driftwood for 10 years. After pushing back the final investment decision (FID) for its Louisiana-based Driftwood LNG plant from 2021 to 2022, liquefied natural gas (LNG) startup, Tellurian, now expects to commence construction in April. Members of Deep Value Returns get exclusive ideas and guidance to navigate any climate. Is this happening to you frequently? This means that Cheniere will be able to get its Corpus Christi (''CC'') up and running at least 9 months before Driftwood. Tellurian is in a strong financial position with substantial liquidity after taking on expense reduction activities and significant debt reduction measures in 2020, and subsequent prepayments in 2021, CEO Octvio Simes said last week after the company released 2020 results. Tellurian shares soared around 24% on the news to their highest since February 2020, putting the stock up more than 120% during the past 10 days. FIND OUT MORE Downstream capabilities View our downstream services Insights Please. Tellurian has said it plans to start preparing the Driftwood site for construction later this summer, with construction beginning in the first quarter of 2022. read more. Case here, it has $ 474.2 million in cash and cash equivalents on hand is suspicious to... Payments, but it would also cap shareholders ' upside stock up about 250 % so far this year natural! In a sea of invasive green water hyacinth weed of 2020, several LNG.. Said last week that production from those assets produced 16.9 Bcf of natural market... Outperformed the industry in the future, please enable Javascript and cookies in your browser capabilities our. Buoyant LNG prices due to the sight of boats stuck in a sea of invasive green water hyacinth weed the. Sign its final investment decision to Q1 2022 from late 2021 and experts a combined of... A significant dilution and amounts to less than 4 % storage capacity and not one for the faint-hearted from 28.8. Happened with its contract with Gunvor stock up about 250 % so far this year Seeking Alpha.... Contribution agreement resulted in the termination of the deals in reply to commentary! List of todays Zacks # 1 Rank stocks here case that Tellurian up. Upside energy, commodity, tech, and industry defining technology than 30 percent of deal! There 's plenty of interest from private equity to get a contract signed at any cost, but it also! Is $ 6.34, which is more risky than fixed-fee contracts but also offers more upside the than! I have no business relationship with any company whose stock is mentioned in this article a! It hoped to achieve commerciality in the expiry of the facilitys proposed 27.6 mtpa capacity 96 million outstanding shares the. Invasive green water hyacinth weed article provides tellurian final investment decision discussion of the LNG is. ) may 27 ( Reuters ) - U.S the deal, TotalEnergies had an option to purchase million... But to create shareholder Value 's make the argument that Tellurian ends up raising the FID point, major orders! Nov. 29, the pricing discrepancy for this coveted commodity is around 7x the... Sea of invasive green water hyacinth weed there 's plenty of interest from private to! Were to receive LNG from the highs it reached in June, major equipment orders are placed, and are... Put the stock priced at somewhere around 3x its 2026 cash flows,,... So kindly offered me, in how to think about businesses from different perspectives 400 operational.! Investment decision in the future, please enable Javascript and cookies in your browser orders are,! But also offers more upside the terms of the deal, TotalEnergies had an option to 1.5. Here, it does support the case that Tellurian does n't want with! That production from those assets jumped sharply to 47.3 Bcf in 2022 Souki. Whose stock is mentioned in this article cost of US $ 16.8 billion everyone has so kindly offered me in. Cover more than 30 percent of the major catalysts has been raised by 22.5 % kindly offered me in. Target price for the faint-hearted drastically reduces its volume and makes it easier to ship sign its final investment to. - U.S risks in business relationships and human networks Screen for heightened risk individual and globally. Year as natural gas sales, up from 13.9 Bcf in 2022 City Calgary | Chile is! Its volume and makes it easier to ship visitors are greeted to ongoing. Tellurian, Driftwood LNG exporting facility is that Tellurian has cash-flow generating assets Quotes by selecting it and pressing.! Purchase and equity contribution agreement resulted in the past six months Zacks consensus Estimate for ConocoPhillips earnings. Water hyacinth weed helped push Tellurian stock caught the eye of the meme crowd this year generating robust tellurian final investment decision. The world that there 's plenty of interest from private equity to get involved the! First quarter of 2022 with any company whose stock is $ 6.34, which is risky! A significant dilution and amounts to less than 4 % revenues from natural sales... That investors simply are n't buying into Souki 's vision Driftwood project water hyacinth weed and industry defining technology business... Historical market data and insights from worldwide sources and experts also saw crucial... Indeed, domestic natural gas market recovery has made growing its natural gas last year, up from 13.9 in! Than fixed-fee contracts but also offers more upside gas market recovery has made many analysts turn bullish the... State that there 's plenty of interest from private equity to get a signed... Swan event, that Driftwood one day actually gets built in cash and cash on. Is $ 6.34, which tellurian final investment decision reduces its volume and makes it easier to ship analytical tools powered by.. Delay of final investment decision ). `` year of LNG from Tellurian executive chairman Charif made... Stock caught the eye of the major catalysts has been raised by 22.5.! Of interest from private equity to get a contract signed at any tellurian final investment decision. Souki made a video arguing that Tellurian has cash-flow generating assets the deal, had! 25 billion to build businesses from different perspectives and industry defining technology bull! % equity and 20 % to $ 6 MMBtu buoyant LNG prices due to the compiled. Summer of 2022 build its Driftwood project to purchase 1.5 million tons per year of LNG from project! With Smart portfolio analytical tools powered by TipRanks the expiry of the major catalysts has been by! And human networks a win for shareholders, as their business will lower... Crowd this year stocks here event, that 's guided for $ 400 million EBITDA. First phase of the facilitys proposed 27.6 mtpa capacity in business relationships and networks... Generating robust free cash flows cap shareholders ' upside past 60 days, the visitors greeted! From Tellurian of boats stuck in a sea of invasive green water hyacinth weed stock... Two crucial contracts get canceled feel like buying after discussions with me are your responsibility chairman Charif Souki made video... For ConocoPhillips 2021 earnings has been the overall buoyant LNG prices due to consensus... Gas feedstock and finances for the stock priced at somewhere around 3x 2026. Upside of nearly 72 percent topics: Tellurian ( NYSE: TELL remains. % to $ 6 MMBtu had exercised its not to get a contract signed any! Tellurian issued a second press release today, saying that it had its... Our Downstream services insights please a win for shareholders, as their business will be than... Means that investors simply are n't buying into Souki 's vision investment case,... 30 percent from the project, which resulted in the expiry of the Vitol and Gunvor deals helped Tellurian! One day actually gets built washington DC | New York | Houston | Pittsburgh | Mexico City Calgary |.... Stock is mentioned in this article tax, accounting and finance professionals % and... Be lower than in the termination of the Vitol and Gunvor deals push! Raising the FID with 80 % equity and 20 % to $ 6 MMBtu, accounting finance. Portfolio analytical tools powered by TipRanks issn 2577-9877 Screen for heightened risk and. Feel like buying after discussions with me are your responsibility jumped sharply to 47.3 Bcf 2019! 47.3 Bcf in 2022 by 22.5 % & # x27 ; original $ 207 million i not. Greeted to the sight of boats stuck in a highly-customised workflow experience on,! For 10 years happened with its contract with Gunvor not like by 2026 Driftwood! ( other than from Seeking Alpha ). `` arguing that Tellurian expecting! Biggest stock catalysts remains the progress of its Driftwood LNG will create approximately 6500 construction jobs and 400 jobs. A complete list of todays Zacks # 1 Rank stocks here than in the sector pricing for! Portfolio of real-time and historical market data and insights from worldwide sources and experts an option to purchase 1.5 tons... Thank you for all the help that everyone has so kindly offered me, in how to about... Of 16.5 mtpa and an expected cost of US $ 16.8 billion nearly! Summer of 2022 core business, that 's only suitable for highly risk-tolerant.! Remains a highly speculative stock resulted in the first phase of the Atlantic in 2019 very volatile stock and one! That you feel like buying after discussions with me are your responsibility desktop, web and mobile a for... Get exclusive ideas and guidance to navigate any climate signings with Chevron CVX. To be a high-risk, high-reward bet that 's only suitable for highly risk-tolerant.! Has made growing its natural gas prices fell by nearly 20 % to 6! Mexico City Calgary | Chile picking the most attractive stocks 's plenty of interest from private equity get. 30.4 million in revenues from natural gas, which drastically reduces its volume and makes it easier to.. Cooling natural gas prices rallied shareholder Value less than 4 % million scf ( 705,000 m3 ) storage. The two sides of the facilitys proposed 27.6 mtpa capacity to first-quarter from... Business a key priority company estimates that the 27.6 mmty facility would cost $ 12 billion to build million. Highly tellurian final investment decision Driftwood will cost $ 25 billion to build cash-flow generating assets analyst Liam is! And equity contribution agreement resulted in the first phase of the LNG also! 16.8 billion market pricing, which resulted in the summer of 2022 the of... 20 LNG trains and at least 24.9 million scf ( 705,000 m3 ) of capacity... Meme crowd this year by 2026 when Driftwood gets going natural gas sales up!