Total to buy 23% of Texas-based Tellurian to develop gas project

French oil giant Total will acquire around 23% of Texas-based Tellurian Investments at $5.85 per share, or $207m, to develop an integrated gas project.

Based in Houston, Tellurian is a private company developing natural gas liquefaction export projects.

Total president of Gas, Renewables 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 liquefied natural gas 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.”

Tellurian president and chief executive officer Meg Gentle said the investment by Total “materially strengthens” the group’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.

Tellurian entered into a merger agreement with Magellan Petroleum Corp back in August which is expected to close in the first quarter of next year.

At 1010 GMT, Total shares were down 0.1% to €48.02.