Feb 6 Reuters Tellurian is exploring the sale of its Haynesville upstream business, the liquefied natural gas LNG firm said on Tuesday, as it looks to raise capital for its Driftwood LNG project.

The company has been trying to develop a 27.6 million metrictonsperannum LNG plant, which has suffered multiple delays, in Lake Charles, Louisiana, and earlier said it sought help with balance sheet management and commercial structures.

By unlocking the full value of these highquality assets, we aim to substantially reduce our debt, further reduce our general and administrative expenses, and provide additional cash, enabling us to develop Driftwood LNG, CEO Octávio Simões said.

Tellurian is one of a few companies that has all of its approvals for the production and export of LNG from countries not covered by U.S. free trade deals. It has however not been able to attract the commercial support for the Driftwood project and is yet to give the financial green light to the project.

In its third quarter report, Tellurian said its Haynesville asset could be worth 365 million. However, U.S. natural gas prices have fallen significantly from 2022 levels and traded Monday at about 2.08 per thousand cubic feet, down from an average of 6.50 per thousand cubic feet for 2022.

Tellurian reported thirdquarter 2023 production of 19.5 billion cubic feet equivalent, and upstream segment results generated adjusted earnings before interest, tax, depreciation and amortisation EBITDA of 18.3…