Tellurian, the developer of the Driftwood LNG project, has reached an agreement with an unnamed institutional investor to pledge its interest in the Driftwood project as collateral for the money it owes the investor, according to the company's latest SEC filing.

Tellurian had warned investors last fall that continued operating losses and dwindling cash reserves might not last a year given operating and debt costs. The going-concern warning preceded its ouster of Chairman Charif Souki.

The investor and Tellurian have agreed that the LNG developer can reduce its minimum liquidity requirement from $40.0 million to $25.0 million from February to April 2024.