Total Buys 23% Share in US Tellurian Group for $207 Mln
French Total acquired approximately 23 percent of the U.S. group Tellurian at $5.85 per share for $207 million, the company announced on Tuesday.
Total said that it is acquiring the share to develop an integrated gas project, from the acquisition of competitive gas production in the U.S. to the delivery of LNG to international markets from the Driftwood LNG terminal.
Driftwood LNG is in the engineering design and pre-filing phase of the project.
"Totalís investment materially strengthens Tellurianís position as a large infrastructure development company and is an important milestone in the growth of Tellurianís LNG business, including the Driftwood LNG project in Calcasieu Parish, Louisiana," Meg Gentle, Tellurian president and CEO said.
Gentle said the company is looking forward to delivering low cost LNG to the global market.
"Investing in Tellurian at an early stage will give us the opportunity to potentially strengthen our mid and long-term LNG portfolio thanks to a very cost competitive project," said Philippe Sauquet, Total president of gas, renewables and power.
The Federal Energy Regulatory Commission (FERC) approved Driftwood LNGís pre-filing request on June 6, 2016. Tellurian expects to commence construction of Driftwood LNG in 2018 and produce LNG in 2022.
Tellurian is a private company developing natural gas liquefaction export projects, based in Houston, Texas.(Anadolu Agency, December 20, 2016)