Williams Companies Executive Confirms Decision Against Bid for Tellurian

Pipeline operator Williams Companies (WMB.N) has examined the possibility of acquiring struggling liquefied natural gas (LNG) developer Tellurian (TELL.A), but ultimately deemed its export venture too precarious, according to the company’s strategy chief.

Tellurian recently announced its openness to offers for its proposed Driftwood LNG gas export terminal, following unsuccessful attempts to secure long-term sales and purchase agreements to support the Louisiana-based project. Additionally, it initiated the sale of its natural gas production unit last year due to mounting losses.

Williams Companies Executive Confirms Decision Against Bid for Tellurian
Tellurian seeks offers for Driftwood LNG terminal amid financing challenges.

Williams’ Executive Vice President of Strategy, Chad Zamarin, explained that while Tellurian’s Driftwood project boasts permitting advantages and a compelling speed to market, it lacks sufficient commercial contracts on the demand side.

Zamarin, speaking at the sidelines of the CERAweek by S&P Global energy conference, emphasized Williams’ interest in LNG projects that are already well-advanced. He noted that new-build projects like Driftwood face disadvantages compared to expansions of existing plants.

Williams Companies Executive Confirms Decision Against Bid for Tellurian
Lazard explores sale options for Tellurian’s Haynesville gas production business for capital raising.

Earlier this year, Tellurian enlisted investment bank Lazard to explore a sale of its Haynesville gas production business in East Texas and Louisiana, aiming to secure fresh capital for the Driftwood project.

Lazard’s scope includes alternative debt and equity financing, sale of equity interests in Driftwood or Tellurian, potential company sale, and aiding in the procurement of commercial partners, as disclosed by Tellurian on Monday.

Jackson Kelley
Jackson Kelley
Jackson is a political activist and market expert. He covers the impact of politics on the market and global economy.
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