Tellurian Cuts Workforce, names new CFO (Update)

(Confirms cost-cutting steps, names new team in lead paras)

US LNG developer Tellurian has appointed Kian Granmayehas CFO, replacing Antoine Lafargue who will join the marketing group, it said March 9. Granmayeh's last job had been at Apache Corporation until January 2019 when he joined Tellurian.

Amos Hochstein, formerly senior vice-president of LNG marketing, now leads the marketing of LNG and partnership interests from Driftwood LNG. 

CEO Meg Gentle said: “We are reducing our costs and reorganising the company to make Tellurian resilient in the face of current challenges in financial and energy markets. We are redirecting resources to complete the marketing of the Driftwood LNG project, which is fully permitted and ready to begin construction. Amos’s experience in LNG markets and expertise in negotiations brings together key elements to complete our Driftwood partnership. With a broad background across the finance organisation, Kian will be focused on capital discipline and refinancing our existing obligations to extend our liquidity.”

The day before, Bloomberg reported sources saying that Tellurian had laid off 70 staff, or 40% of its workforce, as part of a major restructuring effort. It also said that Tellurian could delay a final investment decision at its Driftwood LNG project by 12-18 months. In October last year, Tellurian told NGW that an FID on the venture would be taken in early 2020, itself a delay from earlier plans. 

At full capacity Driftwood LNG is due to export  27.6mn mt/yr of LNG, the gas coming from the Permian basin where it trades at a hefty discount to Henry Hub. It is a by-product of oil, and prices have been negative.

Tellurian announced on March 2 it would slow corporate spending and reorganise financing for a 2019 term loan because of the uncertain outlook for gas demand. A long-awaited deal with importer Petronet failed to materialise during the US president Donald Trump's visit to India last month.