Tellurian Inc.
| Company type | Public (until 2024) |
|---|---|
| Industry | Natural gas |
| Founded | 2016 |
| Founder | Charif Souki, Martin Houston |
| Defunct | 2024 |
| Fate | Acquired by Woodside Energy |
| Headquarters | Houston, Texas , United States |
Area served | United States (primarily Louisiana LNG export) |
Key people | Charif Souki (co-founder), Martin Houston (co-founder), Meg Gentle (former EVP Marketing) |
| Products | Natural gas, LNG export (Driftwood LNG terminal) |
Number of employees | Reduced by 40% in 2020 (exact number not specified) |
| Parent | Woodside Energy (from 2024) |
Tellurian Inc. is a U.S.-based natural gas enterprise with its main office located in Houston, Texas. Established in 2016 by Charif Souki and Martin Houston, the firm was purchased by Woodside Energy in 2024.
History
Following his removal from Cheniere Energy after investor Carl Icahn took control, Charif Souki co-founded Tellurian alongside Martin Houston, who previously served as COO of BG Group. Souki’s strategy focused on offering prices 15 to 20 percent lower than rivals such as Cheniere. The company attracted several former Cheniere leaders, including Meg Gentle, who had been the executive vice president of marketing.
Tellurian combined operations with petroleum firm Magellan on August 2, 2016. Initial funding partners included French oil major Total, which secured a 23% ownership by investing $207 million in December of that year. After its inaugural year, Tellurian launched an initial public offering on NASDAQ under the ticker TELL.
In 2017, Tellurian allocated $85 million to acquire shale assets in Louisiana, becoming the first U.S. developer to generate its own natural gas supply for export facilities.
The company’s primary initiative was the Driftwood LNG export terminal near Lake Charles, Louisiana, designed to produce 27.6 million tonnes annually. In 2019, Total committed to buying 2.5 million tonnes from this project. Valued at $30 billion and contracted with Bechtel on a fixed-price agreement, the project also received investment support from Vitol and India’s Petronet.
Nevertheless, construction delays at Driftwood occurred due to declining fuel prices, trade disputes between the U.S. and China, and disruptions caused by the COVID-19 pandemic—issues that notably affected major LNG buyers such as China, South Korea, and Japan. These obstacles contributed to a sharp drop in stock value and a workforce reduction of 40% during 2020.
A legal conflict between Tellurian and Icahn along with Cheniere centered on $46 million in loans extended by Charif Souki while he was CEO at Cheniere. Cheniere claimed these funds helped establish Tellurian and accused Souki of misappropriating initial Driftwood plans. Tellurian refuted these allegations, maintaining that the loan was invalid and that Driftwood represented an independent venture. The case was dismissed prior to trial in 2020.
In July 2024, Australian energy corporation Woodside Energy announced its intention to acquire Tellurian for $1.2 billion. The transaction was finalized in October 2024, with the Driftwood LNG facility subsequently renamed Woodside Louisiana LNG.