Woodside Energy (ASX: $WDS) announces acquisition of Tellurian and Driftwood LNG

Woodside Energy Group Ltd (ASX: $WDS) has entered into a definitive agreement to acquire all issued and outstanding common stock of Tellurian (NYSE: TELL) including its owned and operated US Gulf Coast Driftwood LNG development opportunity. The consideration for the transaction is an all-cash payment of approximately $900 million, positioning Woodside to be a global LNG powerhouse.

Woodside CEO Meg O'Neill on the acquisition

The acquisition of Tellurian and its Driftwood LNG development opportunity positions Woodside to be a global LNG powerhouse. Having a complementary US position would allow us to better serve customers globally and capture further marketing optimization opportunities across both the Atlantic and Pacific Basins. Through this acquisition, 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.

Outlook and Strategic Rationale

The acquisition of Tellurian and its Driftwood LNG development opportunity strengthens Woodside's positioning to deliver on their strategy to thrive through the energy transition. It expands Woodside's position as a leading independent LNG company, adds a high-quality, fully permitted US LNG development option to Woodside's portfolio, and enables value creation from marketing optimization with geographic diversification. Woodside's target of reducing net equity Scope 1 and 2 emissions by 2030, and aspiration for net zero by 2050, are unchanged. The Driftwood LNG development opportunity is competitively advantaged, and Woodside expects to leverage its global LNG expertise to unlock this fully permitted development and expand its relationship with Bechtel, the EPC contractor for both Driftwood LNG and the Pluto Train 2 project in Australia.