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• It’s a Cut-Throat World in LNG: Tellurian Consider …

• AI Energy Thirst Keeps Coal Plants Alive

• Tweet of the Day

It’s a Cut-Throat World in LNG: Tellurian Considers Sale

Tellurian is considering a sale among several options for turning the business around.

The LNG developer has hired Lazard to help with that.

In the meantime, the future of its Driftwood LNG project hangs by a thread.

They can’t all be winners

Driftwood LNG has been out of luck for years now.

Tellurian has failed to secure enough investors for the project.

It recently ousted its CEO, Charif Souki, but it didn’t help.

The LNG industry has become really competitive.

There’s so much demand in the future everyone wants a piece of it.

But not everyone can get it because LNG plants cost tens of billions.

The trick is that you need to secure buyers in advance to get investors.

And it seems there are not enough buyers for everyone else and Tellurian.

Who knew?

So now it’s looking for investors with the help of Lazard.

Either that or a buyer…

At the worst possible time.

The Biden LNG dilemma

Tellurian is trying to stay alive at a time when the future of U.S. LNG is highly uncertain.

The federal government is about to make new LNG project approvals much tougher.

Here, at least, Tellurian lucked out because Driftwood is already approved.

But investors could get even harder to come by.

If they think Biden’s out to get the LNG industry.

Unfortunately for Tellurian, it sure looks that way.

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AI Energy Thirst Keeps Coal Plants Alive

Artificial intelligence is all the rage.

It is also a massive energy consumer.

In some parts of the U.S., this means a new lease on life for coal power plants.

Forget EVs; data centers are a bigger energy drain

Electricity demand is projected to expand a lot in the coming years.

That’s what happens when you want to electrify everything.

But it looks like EVs and heat pumps won’t be the only drivers of this demand increase.

Data centers and the growing deployment of AI will cause demand to go throw the roof.

And there’s not nearly enough low-carbon capacity to satisfy that demand.

The IEA forecast recently that data centers and AI alone will cause a twofold increase by 2026.

That’s a lot.

Now add all those EVs and heat pumps…

It would be a disaster in the making.

Except there are still coal plants to take care of the supply those monster consumers need.

Isn’t that ironic?

Drivers of the transition… in another reality

Big Tech and their smaller friends who operate data centers like to brag about how green they are.

As proof, they usually point to their power purchase agreements with wind and solar developers.

What they forget to mention is that those PPAs don’t cover their total consumption.

Because that’s impossible.

Data centers need power around the clock.

And the only plants that can provide that run on gas, coal, and nuclear.

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