Total has become the latest big name investor in Tellurian Investments after it agreed to take a 23% stake in the Houston-based company.

The French oil major said it was paying $5.85 per share for an undisclosed number of shares in a total investment worth $207m.

Tellurian Investments is said to focus on offering mid-scale natural gas liquefaction and export projects along the US Gulf coast.

It was started earlier this year by Cheniere Energy founder and former president Charif Souki and ex-BG Group LNG supremo Martin Houston.

“Total acquiring a 23% stake in Tellurian and the news that BP has farmed into a near-shore FLNG project in Mauritania and Senegal is a sign that a technological shift is under way – the majors are going big on small-scale LNG,” said Giles Farrer, research director, Global LNG, at Wood Mackenzie.

“The jury is still out on whether small-scale LNG is really cheaper per tonne of LNG produced than large scale, but it's certainly a more manageable investment and that’s appealing in the present environment.

“For Tellurian, it’s a big endorsement and shows that their leadership can do the deals to meet its ambitions.

“As one of the big LNG portfolio players, Total can add both financial clout and could support the development of some of the trains by buying LNG from the project.”

Farrer added: This is a typical Total LNG acquisition. It’s built its LNG business on acquisitions over the last few years with deals in Australia and Russia, it buys significant but minority stakes in projects at an early stage then helps mature them.”

Total said the Tellurian investment aims to develop an integrated gas project, from the acquisition of competitive gas production in the US to the delivery of LNG to international markets from the Driftwood LNG terminal.

 “Total’s investment materially strengthens Tellurian’s position as a large infrastructure development company and is an important milestone in the growth of Tellurian’s LNG business, including the Driftwood LNG project in Louisiana,” said Tellurian chief executive Meg Gentle.

Total’s president of gas, renewables and power Philippe Sauquet said: “We are happy to join forces with Tellurian, who has a very experienced team with a strong track record of developing and managing LNG assets in the US.

“Investing in Tellurian at an early stage will give us the opportunity to potentially strengthen our mid and long term LNG portfolio thanks to a very cost competitive project.”

The Driftwood LNG project is in the engineering design and pre-filing phase of the project with construction expected to start in 2018 and produce LNG in 2022.

Last month GE Oil & Gas, a subsidiary of the American multi-national corporation General Electric, made a $25m preferred equity investment in Tellurian.

Tellurian entered into a merger agreement with Nasdaq-listed Magellan Petroleum Corp on 2 August 2016, and expects the agreement to close in the first quarter of 2017.