Houston liquefied natural gas company Tellurian saw losses grow in the first quarter despite an increase in natural gas sales from operations in the Haynesville Shale of Louisiana.
The company lost $41 million, 2o percent more than the $34 million lost in the same period a year earlier. First quarter revenue increased 66 percent to $8.2 million compared with the $5 million reported a year earler.
Activity on the company’s proposed Driftwood LNG export terminal in Louisiana remains stalled under negative market conditions, meaning that Tellurian’s only source of revenue remains the company’s natural gas wells in the Haynesville Shale of Louisiana.
The company’s proposed export terminal holds a federal permit make more than 27.6 million metric tons of LNG per year and has sold roughly a third of that production but has been unable to secure more deals to guarantee financing and construction. Like many other companies in the LNG industry, Tellurian has been unable to sign new deals because shutdowns related the coronavirus pandemic have created a global supply glut of liquefied natural gas so severe that shipments are being turned away from destinations around the world.
Over the past two months, Tellurian has sought to save its Driftwood LNG project by laying off more than 40 percent of its 176 employees, reshuffling executives, cutting expenses and renegotiating debt with this lenders.
“Tellurian has taken actions to strengthen our balance sheet in the midst of extreme energy and financial market conditions,” Tellurian CEO Meg Gentle said. “We have streamlined the organization and arranged a $50 million financing. We are lean, resolved, and focused on delivering our first project, Driftwood LNG.”