Former Cheniere Energy boss Charif Souki says the answer to the glut of natural gas is even lower prices, which he says his new exporter Tellurian Investments will supply.
Natural gas prices hit a more than one-month low this week due to warm weather in the U.S., as well as a persistent global oversupply. But Souki told CNBC that low prices were key to rebalancing the market.
The founder and former chief executive of U.S. liquefied natural gas (LNG) pioneer Cheniere Energy, Souki co-founded Tellurian Investments this year with Martin Houston, the former chief operating officer of BG Group.
Souki said Tellurian would look to undercut competitors' prices by about 17 percent when it started shipping in six years' time - a price reduction Souki told CNBC could be achieved by engaging producers early in the process and through better engineering.
Tellerian's LNG terminal in Louisiana is expected to be operational by 2022, by which time Souki said he expected supply-side dynamics to have tightened up as the abundant current supply reduced prices, spurring demand.
Record natural gas volumes being exported by Russia to Europe were contributing to the current glut, while new markets were coming on board on a "weekly basis," Souki said. Emerging producers included India, Abu Dhabi and Vietnam, he said.