Magellan Announces Merger and Enters the LNG Business
Magellan Petroleum announced that it has entered into a merger agreement with Tellurian Investments, a recently formed private company focused on the development of a mid-scale LNG facility on the U.S. Gulf Coast. Tellurian is led by Charif Souki, former founder, Chairman, and CEO of Cheniere Energy and Martin Houston, former COO of BG Group.
“Our experienced team leading Driftwood LNG, a 26-millon ton liquefaction project in Louisiana, and our deep relationship with Bechtel and its sub-contractors, GE and Chart Industries, are key factors that we believe will drive the successful development of one of the most cost-competitive LNG projects globally,” said Martin Houston, co-founder of Tellurian. “With this transaction, we will be able to access more attractive financing in order to develop Driftwood LNG, which should come on stream in 2022, just as the markets for new LNG open up.”
The board of directors of each company has unanimously approved the terms of the agreement and has recommended that its shareholders approve the transaction. Completion of the merger is subject to approval of the Magellan and Tellurian shareholders and certain regulatory approvals and customary conditions. The transaction is expected to close in the fourth quarter of 2016.