In this regard, the French based oil, gas and energy company will buy each share of the stake in the Houston headquartered natural gas liquefaction export project developer for $5.85.
Tellurian president and CEO Meg Gentle said, “Total’s investment materially strengthens Tellurian’s position as a large infrastructure development company and is an important milestone in the growth of Tellurian’s LNG business, including the Driftwood LNG project in Calcasieu Parish, Louisiana."
Post acquisition, Total and Tellurian’s jointly developed integrated gas project will be responsible for acquiring competitive gas production in the US.
It will also handle the delivery of liquefied natural gas (LNG) from the Driftwood LNG terminal to global markets.
Total Gas, Renewables and Power president Philippe Sauquet said: “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.”
Driftwood LNG is currently going through the engineering design and pre-filing phase of the project. Its pre-filing request was approved by The Federal Energy Regulatory Commission (FERC) in June.
As per Tellurian, the Driftwood LNG project is likely to break ground in 2018 and produce LNG four years later.
In November end, Tellurian received a $25m investment from GE Oil & Gas for an undisclosed stake and the company planned to use it for the development of the Driftwood LNG project.
In August, Tellurian had agreed to merge with US based Magellan Petroleum in return of nearly 122 million shares of the latter’s common stock.
Image: The Total building (Total HQ) in la Défense near Paris, France. Photo: courtesy of I Tangopaso (talk) and Wikipedia.org.
