Total acquires 23% of Tellurian Investments for nearly $207m

French oil and gas major Total has acquired nearly 23% of Tellurian Investments for nearly $207m at $5.85 per share price.

Total made this investment in Tellurian to develop an integrated gas project from the acquisition of competitive gas production in the US, to the delivery of LNG to international markets from the Driftwood LNG terminal.

Tellurian Investments 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.

“We welcome Total, one of the major global LNG operators, as a shareholder. We look forward to delivering low-cost LNG to the global market.”

Driftwood LNG is in the engineering design and pre-filing phase of the project.

The Federal Energy Regulatory Commission (FERC) approved Driftwood LNG’s pre-filing request on 6 June.

Tellurian expects to commence construction of Driftwood LNG in 2018 and produce LNG in 2022.

Total president of gas, renewable and power Philippe Sauquet said: “We are happy to join forces with Tellurian, who has a very experienced team with a strong track record of developing and managing LNG assets in the US.

“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.”

Based in Houston, Texas, Tellurian Investments focuses on developing natural gas liquefaction export projects.