In response to uncertain market conditions, Tellurian aims to reduce its corporate spending and reorganize financing for its 2019 term loan.
“Given current global financial market conditions and increasing restrictions on travel caused by the onset of coronavirus, we are taking the steps necessary to focus on preserving the value we have created at Tellurian and Driftwood LNG. To this end we will reduce our corporate overhead to approximately US$6 million per month and have initiated discussions with our lender to extend the maturity of our 2019 term loan due in May 2020,” said Tellurian President and CEO Meg Gentle.
“We have just returned from a visit to India where we continued discussions with Petronet and agreed to extend our MOU to May 31, 2020. We continue to see very strong growth in LNG demand from Asia in general, and India in particular, in spite of world conditions. We are highly confident that when travel restrictions are eased, we will be able to finalize several negotiations to complement the Petronet agreement and allow us to reach final investment decision (FID). With the new corporate overhead structure, we have a long runway to execute on our business model.”