HOUSTON, March 19 (Reuters) - Pipeline operator Williams

Companies ( WMB ) looked at acquiring struggling liquefied

natural gas (LNG) developer Tellurian, but considered

its export project too risky, the company's strategy chief said

on Tuesday.

Tellurian said this week it would consider offers for its

proposed Driftwood LNG gas export terminal after unsuccessfully

pursuing long-term sales and purchase agreements to finance the

Louisiana project. It also put its natural gas production unit

on the block last year as losses mounted.

Williams Executive Vice President of Strategy Chad Zamarin

said Williams was looking at opportunities to continue investing

in LNG projects but Tellurian's 27 million metric tons per annum

Driftwood project did not have the commercial strength.

"There is the advantage of it being permitted, it does have

a speed to market that is interesting to us, but it does not

have the commercial contracts on the demand side," said Zamarin

in an interview on the sidelines of CERAweek by S&P Global

energy conference.

Williams is interested in LNG projects that are already

advanced, Zamarin said, where new-build projects like Driftwood

are at a disadvantage to expansions of existing plants.

Tellurian earlier this year hired investment banker Lazard

to explore a sale of its Haynesville gas production business in

East Texas and Louisiana as part of efforts to raise new capital

to continue the Driftwood project.

Lazard also is focused on alternative debt and equity

financing, the sale of equity interests in Driftwood or

Tellurian, a potential sale of the company, and assisting in

securing commercial partners, Tellurian said on Monday.