Tellurian Inc.
Tellurian Inc. was a Houston-based American natural gas company developed around the Driftwood LNG export project and acquired by Woodside Energy in 2024.
Last updated August 26, 2026
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Overview
Tellurian Inc. was an American natural gas company founded in 2016 by Charif Souki and Martin Houston. Its business model combined natural-gas production, liquefaction, and international liquefied natural gas exports, with the aim of building an integrated LNG business rather than operating only as a terminal developer. The company was headquartered in Houston, Texas, and became publicly traded on the Nasdaq under the ticker TELL after roughly a year of operations. Tellurian emerged from the experience of its founders in the LNG industry. Souki had founded Cheniere Energy and had served as its chief executive before leaving the company following a board and management conflict associated with investor Carl Icahn's involvement. Houston was formerly chief operating officer of BG Group. Tellurian also recruited a number of former Cheniere executives, including Meg Gentle, who later became one of the company's senior leaders. At launch, Souki presented Tellurian as a challenger to established LNG companies, stating that it intended to offer gas and LNG at a meaningful discount to competitors. The company initially pursued a vertically integrated strategy. In August 2016, it entered into a merger agreement with petroleum company Magellan. In December of that year, Total acquired a 23 percent interest in Tellurian for $207 million, becoming an important early investor. In 2017, Tellurian purchased approximately $85 million of shale assets in Louisiana. The acquisition gave it access to its own natural-gas production and made it, according to the referenced account, the first United States developer to produce its own fuel for an export terminal. Tellurian's central undertaking was Driftwood LNG, a proposed liquefied natural gas production and export complex on the west bank of the Calcasieu River in Louisiana, south of Lake Charles. The company projected annual production capacity of approximately 27.6 million tonnes of LNG. The project was designed as a large-scale export platform supported by long-term commercial relationships and major infrastructure spending. Total agreed in 2019 to purchase 2.5 million tonnes of LNG per year from Driftwood. Vitol and India's Petronet were also identified as project backers or commercial participants. The projected construction cost was approximately $30 billion under a fixed-price, lump-sum contract structure with Bechtel; this figure is a project estimate rather than a completed expenditure. Driftwood's development encountered substantial obstacles. Construction delays, weaker natural-gas prices, continuing United States-China tensions, and the economic disruption caused by the COVID-19 pandemic made financing and project execution more difficult. LNG demand and pricing conditions were particularly affected in China, South Korea, and Japan, three major importing markets. Tellurian's share price declined during this period, and the company reduced its workforce by approximately 40 percent in 2020. Tellurian was also involved in prolonged litigation with Cheniere over loans made by Souki to Parallax Enterprises during his time at Cheniere and over the origins and relationship between early LNG project concepts and Driftwood. Cheniere alleged that the loans had been used to establish Tellurian and that Souki had taken elements of an earlier project plan. Tellurian disputed those claims, maintaining that the loan was void and that Driftwood was a distinct and larger development. The case was dismissed in 2020. In July 2024, Woodside Energy agreed to acquire Tellurian for an enterprise value of approximately $1.2 billion. The transaction closed in October 2024. Following completion, the Driftwood LNG project was renamed Woodside Louisiana LNG, ending Tellurian's existence as an independent corporate brand.
History
Tellurian was established in 2016 by Charif Souki and Martin Houston. Souki brought extensive LNG-industry experience from Cheniere Energy, while Houston had previously served as chief operating officer of BG Group. Souki had left Cheniere after a dispute involving the company's board and investor Carl Icahn. Tellurian recruited several former Cheniere personnel, including Meg Gentle, and presented itself as a new competitor in the rapidly expanding United States LNG sector. The company's early strategy differed from a pure infrastructure-development model. Tellurian sought to control parts of the gas supply chain, from production through liquefaction and export. In August 2016 it entered a merger agreement with Magellan. Total became an early strategic investor in December 2016, purchasing a 23 percent stake for $207 million. Tellurian went public on the Nasdaq after approximately one year of operation. In 2017 it purchased $85 million of shale assets in Louisiana, allowing it to produce gas intended for its planned export facilities. The company's principal project was Driftwood LNG, a proposed export and liquefaction complex located on the west bank of the Calcasieu River near Lake Charles, Louisiana. Tellurian projected annual production of 27.6 million tonnes of LNG. The development was intended to use a large integrated supply and export model and was projected to cost approximately $30 billion under a Bechtel fixed-price contract. Total agreed in 2019 to purchase 2.5 million tonnes of LNG from the project, while Vitol and Petronet were also associated with its commercial backing. Driftwood's progress was slowed by construction and financing difficulties. Falling natural-gas prices reduced the attractiveness of new projects, while trade and political tensions between the United States and China complicated the global LNG environment. The COVID-19 pandemic further weakened demand and pricing conditions, particularly in major Asian importing markets including China, South Korea, and Japan. Tellurian's declining share price and deteriorating operating environment led to a workforce reduction of roughly 40 percent in 2020. The company also faced a serious legal dispute with Cheniere. Cheniere alleged that $46 million in loans made by Souki to Parallax Enterprises while he was at Cheniere had helped finance the formation of Tellurian. It also argued that Tellurian's Driftwood plans improperly derived from earlier Cheniere concepts. Tellurian contested both assertions, arguing that the loan was void, that Cheniere had breached its arrangements with Parallax by withdrawing funding, and that Driftwood was a separate and substantially larger project. The litigation was dismissed in 2020. Tellurian ultimately became the subject of an acquisition by Woodside Energy. In July 2024, Woodside agreed to purchase the company for an enterprise value of approximately $1.2 billion. Completion followed in October 2024. Woodside renamed Driftwood LNG as Woodside Louisiana LNG, bringing Tellurian's period as an independent natural-gas and LNG company to an end.
- 2024
Woodside agrees to acquire Tellurian
[1]Woodside Energy agrees to acquire Tellurian for an enterprise value of approximately $1.2 billion.
- 2024
Acquisition completed
[1]Woodside completes the acquisition and renames Driftwood LNG as Woodside Louisiana LNG.
- 2020
Workforce reduction
[1]Tellurian cuts approximately 40 percent of its staff amid project delays, weak prices, and the pandemic.
- 2020
Cheniere litigation dismissed
[1]The long-running legal dispute involving Souki, Parallax, and the origins of Driftwood is dismissed.
- 2019
Total agrees to purchase Driftwood LNG volumes
[1]Total agrees to buy 2.5 million tonnes of LNG from the planned Driftwood project.
- 2017
Tellurian becomes publicly traded
[1]After approximately one year of operation, Tellurian lists on Nasdaq under the symbol TELL.
- 2017
Louisiana shale assets acquired
[1]Tellurian buys approximately $85 million of shale assets in Louisiana to support its integrated gas-supply strategy.
- 2016
Tellurian is founded
[1]Charif Souki and Martin Houston establish Tellurian as a natural-gas and LNG company.
- 2016
Merger agreement with Magellan
[1]Tellurian enters into a merger agreement with petroleum company Magellan.
- 2016
Total takes a strategic stake
[1]Total purchases a 23 percent interest in Tellurian for $207 million.
Products and positioning
Tellurian positioned itself as an integrated and cost-competitive LNG company combining upstream natural-gas production with liquefaction and export capacity. Its principal strategic proposition was to challenge established LNG developers with a lower-cost supply model and a large Louisiana export project.
Liquefied natural gas export project
Driftwood LNG
Driftwood LNG was Tellurian's flagship proposed liquefaction and export complex on the west bank of the Calcasieu River in Louisiana, south of Lake Charles. Tellurian projected capacity of approximately 27.6 million tonnes of LNG per year. The project was intended to integrate Tellurian's gas-production assets with liquefaction and international export infrastructure. It was later acquired by Woodside and renamed Woodside Louisiana LNG.
Upstream natural-gas production · 2017
Louisiana shale-gas assets
Tellurian acquired approximately $85 million of shale assets in Louisiana in 2017. The assets supported the company's effort to produce its own natural gas for use in an LNG export model rather than relying exclusively on third-party supply.
Controversies
2020
Cheniere dispute over Parallax loans and Driftwood origins
Cheniere alleged that $46 million in loans made by Charif Souki to Parallax Enterprises during his Cheniere tenure helped establish Tellurian and that Tellurian had taken elements of an earlier Cheniere project concept. Tellurian rejected the allegations, disputed the validity of the loan, and argued that Driftwood was a separate and larger project. The litigation was dismissed in 2020.
Brand decisions
2024
Sell Tellurian to Woodside EnergyM&ABackground
Tellurian's principal asset was the Driftwood LNG development, which required substantial capital and had experienced delays.
Action taken
Woodside agreed to acquire Tellurian for an enterprise value of approximately $1.2 billion and completed the transaction in October.
Aftermath
Tellurian ceased operating as an independent company, and Driftwood LNG was renamed Woodside Louisiana LNG.
Enterprise value. $1.2 billion (2024 acquisition announcement)
2020
Reduce workforce during market stressStrategyBackground
Driftwood delays, falling natural-gas prices, geopolitical tensions, and the COVID-19 pandemic weakened Tellurian's operating environment.
Action taken
Tellurian dismissed approximately 40 percent of its staff.
Aftermath
The reduction reflected the company's attempt to lower costs while its flagship LNG project remained under development.
2017
Adopt an integrated gas-supply and LNG-export modelStrategyBackground
Tellurian sought to distinguish itself from LNG developers that depended entirely on third-party gas suppliers.
Action taken
The company purchased Louisiana shale assets and planned to combine upstream production with the Driftwood LNG export project.
Aftermath
The strategy made Tellurian an integrated developer, but the broader Driftwood project later encountered delays and financing pressure.
Purchase price for Louisiana shale assets. $85 million (2017)
Recent events
Tellurian CEO Meg Gentle departs[2]
Reported:
Tellurian’s former President and CEO Meg Gentle is departing the company.
Sources2 sources
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