Tellurian taps LNG demand surge to deliver fourfold jump in production
Tellurian Inc on Wednesday reported a fourfold increase in quarterly natural gas production to meet a surge in demand triggered by Western sanctions against Russia over the Ukraine invasion.
Shares of the U.S. liquefied natural gas (LNG) developer rose nearly 6% to $1.46 in premarket trade.
Demand for U.S. LNG has soared, with Europe in particular needing vast amounts to help replace Russian pipeline gas that used to make up almost 40% of the continent's imports.
U.S. natgas prices rose 18% year-over-year on average in the fourth quarter.
Tellurian, which is looking to build the Driftwood liquefaction plant in Louisiana, was hit by the cancellation of LNG supply deals after two major potential customers last year raised concerns around its ability to finish the project.
However, the company has already invested about $1 billion at the site after giving a limited license to proceed with construction to partner Bechtel Energy Inc last year.
Houston, Texas-based Tellurian said its natural gas production increased to about 225 million cubic feet per day (MMcfd) in the fourth quarter ended Dec. 31, compared with the previous year's 55 MMcfd.
The company's adjusted core earnings also jumped to $80 million from $13.3 million a year ago.
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