Aethon completes acquisition of Tellurian upstream and midstream assets

Aethon’s footprint across its Fund II and Fund III assets in the Haynesville Shale now includes approximately 375 000 net acres with gathering and treating capacity of over 3 billion ft³/d.

Concurrent with the acquisition, Aethon also signed a Heads of Agreement (HOA) for 2 metric tpa of LNG from the Driftwood LNG project.

“As a private equity firm and operator, we are excited to enhance our strategic footprint by integrating Tellurian's upstream and midstream assets into our extensive Haynesville position,” said Gordon Huddleston, President and Partner of Aethon Energy. “Our goal is to generate compelling returns while supporting the communities we operate in as we make progress towards providing net zero natural gas to both domestic and international customers.

We continue to work with Tellurian on a long-term sale and purchase agreement for 2 metric tpa of LNG and believe in the many benefits that low emission exports have for the broader energy transition.”

“This transaction is a significant step in securing our balance sheet and progressing Driftwood,” added Tellurian Executive Chairman Martin Houston.

“The partnership between Aethon and Tellurian is vital as we continue securing buyers for Driftwood’s remaining capacity and advance its development. Our agreement validates the role of US LNG as the global transition fuel and in providing energy security to America’s partners around the world.”

Citi and Truist Securities served as financial advisors to Aethon, and Gibson Dunn as legal counsel. Lazard was financial advisor to Tellurian, and Akin Gump provided legal counsel.

Read the article online at: https://www.worldpipelines.com/business-news/03072024/aethon-completes-acquisition-of-tellurian-upstream-and-midstream-assets/