LNG developer Tellurian hires investment banker Lazard
HOUSTON, Jan 25 (Reuters) — Liquefied natural gas (LNG) developer Tellurian has hired investment banker Lazard Inc amid a search for investors and customers for its Driftwood LNG export terminal, the company said on Thursday.
Tellurian has been trying to develop a 27.6 million metric-tons-per-annum LNG plant in Lake Charles, Louisiana, and earlier said it sought help with balance sheet management and commercial structures.
“I can confirm we hired Lazard and they are helping us as we seek equity partners,” spokesperson Joi Lecznar said on Thursday.
Tellurian ousted its chairman and co-founder Charif Souki late last year after auditors raised doubts about the company’s ability to cover future expenses. In November, it said available cash and receivables would not be enough to satisfy debt covenants for 12 months without new cash.
Lazard has extensive experience in advisory services, including in-court and out-of-court balance sheet restructurings, its website said. (Reporting by Curtis Williams in Houston; Editing by Chris Reese and Tom Hogue)
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.