Tellurian Inc. (TELL): Business Model Canvas

Key Partnerships

Tellurian Inc. (TELL) recognizes the importance of establishing strong partnerships in order to successfully execute its business model. The following key partnerships play a crucial role in the operations of Tellurian:

• Collaborations with energy producers: Tellurian forms strategic partnerships with energy producers to secure a reliable source of natural gas supply. These collaborations help ensure a steady flow of energy resources to support Tellurian's LNG export projects.
• LNG terminal partners: Tellurian works closely with LNG terminal partners to access necessary infrastructure for the export and distribution of liquefied natural gas. These partnerships enable Tellurian to efficiently transport and store LNG before it is shipped to international markets.
• Pipeline construction companies: Tellurian partners with pipeline construction companies to develop and build the necessary infrastructure to transport natural gas from production sites to processing plants and LNG terminals. These partnerships are essential for ensuring the efficient delivery of natural gas resources to support Tellurian's operations.
• Government and regulatory bodies: Tellurian collaborates with government agencies and regulatory bodies to ensure compliance with laws and regulations governing the energy industry. These partnerships help facilitate the approval process for project development and ensure adherence to environmental and safety standards.

Key Activities

Developing LNG infrastructure: Tellurian Inc. focuses on creating the necessary infrastructure for liquefied natural gas (LNG) production, storage, and distribution. This includes building liquefaction plants, storage tanks, and terminals for loading and unloading LNG.

Extracting and processing natural gas: Tellurian Inc. engages in the extraction and processing of natural gas, which is a critical step in the production of LNG. This involves drilling wells, extracting natural gas from the ground, and processing it to remove impurities and convert it into a liquid state.

Managing logistics and transportation of LNG: Tellurian Inc. oversees the logistics and transportation of LNG from the production site to distribution points around the world. This includes coordinating shipping routes, scheduling deliveries, and ensuring the safe transport of LNG to its final destination.

Securing long-term supply contracts: Tellurian Inc. focuses on securing long-term supply contracts with natural gas producers to ensure a steady and reliable source of feedstock for its LNG production. These contracts help mitigate supply chain risks and provide stability in the volatile energy market.

• Developing LNG infrastructure
• Extracting and processing natural gas
• Managing logistics and transportation of LNG
• Securing long-term supply contracts

Key Resources

LNG production facilities: Tellurian Inc. has access to state-of-the-art LNG production facilities that are crucial for the extraction, processing, and liquefaction of natural gas. These facilities are strategically located to ensure efficient operations and maximize productivity.

Skilled workforce in gas extraction and processing: Tellurian Inc. prides itself on having a highly skilled and experienced workforce that is well-versed in gas extraction and processing. The company invests in training and development to ensure that its employees have the necessary expertise to carry out their roles effectively.

Transportation infrastructure: Tellurian Inc. has a robust transportation infrastructure in place to facilitate the movement of LNG from production facilities to distribution centers and ultimately to customers. This infrastructure includes pipelines, storage tanks, and terminals that are essential for the logistics of the business.

Patents and technology for LNG processing: Tellurian Inc. holds patents and proprietary technology for LNG processing that give the company a competitive edge in the market. These innovations allow Tellurian Inc. to deliver high-quality LNG products efficiently and cost-effectively.

• LNG production facilities
• Skilled workforce in gas extraction and processing
• Transportation infrastructure
• Patents and technology for LNG processing

Value Propositions

As a leading provider of liquefied natural gas, Tellurian Inc. (TELL) offers a range of value propositions to its customers and stakeholders:

• Reliable supply of liquefied natural gas: Tellurian ensures a consistent and dependable supply of LNG to meet the needs of its customers. With a strong network of production facilities and distribution channels, TELL is able to deliver LNG to various regions around the world.
• Competitive pricing in natural gas markets: TELL's strategic partnerships and efficient operations allow the company to offer competitive pricing in the natural gas markets. By optimizing its supply chain and leveraging economies of scale, TELL is able to provide cost-effective solutions to its customers.
• Strategic location of facilities for global distribution: TELL's LNG facilities are strategically located in key regions to facilitate global distribution. This allows TELL to reach a wide range of markets and customers, ensuring timely delivery and strong market presence.
• Commitment to safety and environmental standards: TELL prioritizes safety and environmental sustainability in all aspects of its operations. By adhering to strict safety protocols and implementing environmentally-friendly practices, TELL ensures the well-being of its employees, communities, and the environment.

Customer Relationships

At Tellurian Inc., we prioritize building strong and lasting relationships with our customers to ensure their satisfaction and loyalty. We employ several strategies to cultivate positive relationships with our clients, which include:

• Long-term contracts with utility companies: We establish long-term contracts with utility companies to provide them with a reliable source of energy at competitive prices. This helps us build trust and loyalty with our customers over time.
• Partnerships with industrial energy users: We form partnerships with industrial energy users to understand their specific needs and provide tailored solutions that meet their requirements. By collaborating closely with our industrial customers, we can better serve them and address any challenges they may face.
• Responsive customer support: We have a dedicated customer support team that is available to assist our clients with any issues or concerns they may have. Our team is highly responsive and works diligently to resolve any problems quickly and efficiently, ensuring that our customers feel supported and valued.
• Regular stakeholder communications: We maintain open and transparent communication with our stakeholders, including customers, investors, and regulators. Through regular updates, reports, and meetings, we keep our stakeholders informed about our operations, performance, and future plans, fostering trust and collaboration.

Channels

Direct Sales to Large Energy Consumers: Tellurian Inc. reaches large energy consumers through direct sales channels. This method allows the company to establish direct relationships with customers and understand their specific energy needs. Tellurian's sales team works closely with clients to provide tailored solutions and ensure customer satisfaction.

Distribution through Third-Party Energy Traders: In addition to direct sales, Tellurian also distributes its products through third-party energy traders. This channel allows the company to reach a wider audience and tap into new markets. By partnering with established energy traders, Tellurian can expand its reach and increase sales volume.

Online Information and Sales Platforms: Tellurian Inc. leverages online platforms to provide information about its products and services. The company's website serves as a hub for customers to learn about Tellurian's offerings, industry trends, and energy solutions. Customers can also make purchases directly through the website, making it convenient and efficient for both parties.

Industry Conferences and Energy Expos: Tellurian participates in industry conferences and energy expos to showcase its products and services. These events allow the company to connect with industry professionals, potential customers, and key stakeholders. By establishing a presence at these events, Tellurian can build brand awareness, generate leads, and network with industry leaders.

Customer Segments

Tellurian Inc. serves a diverse range of customers in the energy industry, catering to various segments including:

• Energy utility companies: These customers are essential for distributing natural gas to residential and commercial users. Tellurian provides these companies with a reliable source of LNG to meet the energy needs of their customers.
• Large industrial users: Industries such as manufacturing, petrochemicals, and power generation require significant amounts of energy to operate. Tellurian offers these customers a cost-effective and sustainable solution for their energy needs.
• Government and public entities: Tellurian works with government agencies and public entities to provide them with clean and reliable energy solutions. This includes supplying LNG for power generation, transportation, and other essential services.
• International markets requiring LNG imports: Tellurian also caters to international markets that rely on LNG imports to meet their energy demands. These markets often require a dependable source of LNG to ensure energy security and economic stability.

By targeting these customer segments, Tellurian aims to establish itself as a leading provider of LNG solutions in the global energy market.

Cost Structure

The cost structure for Tellurian Inc. involves various components that are essential for the successful operation of the company's natural gas business. These costs include:

• Capital investment in LNG terminals and infrastructure: Tellurian Inc. invests heavily in developing terminals and infrastructure for liquefied natural gas (LNG) production and distribution. These investments are necessary to ensure the efficient transportation and delivery of LNG to customers.
• Operating costs of LNG production and distribution: The company incurs expenses related to the production of LNG, including the procurement of natural gas feedstock, liquefaction processes, storage, and transportation. Distribution costs also include expenses for regasification and delivery to end-users.
• Regulatory compliance and safety management: Tellurian Inc. must adhere to strict regulations governing the production, transportation, and distribution of LNG. Compliance with safety standards, environmental regulations, and permits is crucial for the company's operations.
• Research and development for new technology: As a leading innovator in the LNG industry, Tellurian Inc. invests in research and development to improve efficiency, reduce costs, and develop new technologies. Research efforts focus on advancing liquefaction processes, storage solutions, and environmental sustainability.

Revenue Streams

Tellurian Inc. generates revenue through a variety of streams that contribute to its overall financial success. These revenue streams include:

• Sales of Liquefied Natural Gas: One of the primary revenue streams for Tellurian Inc. is the sale of liquefied natural gas (LNG). The company produces LNG at its export facilities and sells it to customers around the world. By securing buyers for its LNG, Tellurian is able to generate significant revenue.
• Long-Term Supply Contracts: Tellurian also generates revenue through long-term supply contracts with customers. These contracts guarantee a certain amount of LNG sales over an extended period of time, providing a steady stream of revenue for the company.
• Service Fees from Processing and Storage Facilities: Tellurian operates processing and storage facilities that provide services to customers in the natural gas industry. The company charges service fees for the use of these facilities, generating additional revenue beyond its LNG sales.
• Licensing of Technology and Intellectual Property: Another revenue stream for Tellurian comes from the licensing of its technology and intellectual property. The company has developed innovative solutions in the natural gas sector, and it licenses these technologies to other companies for a fee.