Tellurian Says Chairman Sold Stock Ahead of Looming End of Gunvor Contract

(Reuters) — U.S. LNG developer Tellurian Inc. said in a federal filing late Wednesday that its Executive Chairman Charif Souki sold about $1.1 million of Tellurian stock days before an LNG purchase agreement with commodity trader Gunvor Ltd was set to expire on Feb. 28.

Tellurian said in a filing on Wednesday with the U.S. Securities and Exchange Commission that Souki, who co-founded Tellurian, sold over 705,000 shares worth almost $1.1 million on Feb. 27-28. That was just before the deal with Gunvor was to expire.

RELATED: Tellurian Faces New Setback as Financing Looms for $13 Billion Driftwood LNG Project

Tellurian also said Souki sold over 378,000 shares on March 1 worth almost $560,000. That leaves Souki with around 11.3 million shares of Tellurian stock worth almost $16.8 million.

Tellurian shares closed at a one-week low of $1.48 on Wednesday. That is up a bit from a 25-month low of $1.38 on Feb. 21.

Gunvor agreed to buy about $12 billion of LNG over 10 years from Tellurian's proposed Driftwood export plant in Louisiana. Gunvor and Tellurian have already extended that agreement twice - first from the end of December to the end of January and then from the end of January to the end of February.

The expiration of that contract would pose a new setback in Tellurian's long-running effort to advance its $13.6 billion Driftwood export project.

Officials at Gunvor declined to comment on Thursday on the Tellurian contract.

Officials at Tellurian were not immediately available for comment on Souki's stock sales or the Gunvor contract. Earlier this week, Tellurian declined to comment on the Gunvor contract.

Driftwood is already in the early stages of construction but Tellurian has not made a final investment decision to start major work on the $13.6 billion project while it searches for equity investors and banks to finance the project.

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