Woodside Energy Group Ltd (ASX:WDS, LSE:WDS, OTC:WOPEF) has unveiled a $900 million deal to expand its LNG business, acquiring Tellurian and its primary project Driftwood LNG.
Driftwood is a fully-permitted LNG development project in the United States, located in Lake Charles, Louisiana, with a planned capacity of 27.6 Mtpa.
The phased development is currently expected to start in the first quarter of 2025.
"The acquisition of Tellurian and its Driftwood LNG development opportunity positions Woodside to be a global LNG powerhouse," Woodside chief executive Meg O'Neill said in a statement.
"It adds a scalable US LNG development opportunity to our existing approximately 10 Mtpa of equity LNG in Australia.
“Having a complementary US position would allow us to better serve customers globally and capture further marketing optimisation opportunities across both the Atlantic and Pacific Basins.”
She added: “we are delivering on our strategy to thrive through the energy transition.
“Woodside believes that LNG will play a key role in the energy transition and is well positioned to deliver the energy the world needs while delivering significant value to our shareholders."
Woodside agreed to acquire Tellurian with a cash payment of $900 million, which equates to $1.00 per share, and the company said the transaction equated to an enterprise value of $1.2 billion for Tellurian.