The Federal Energy Regulatory Commission (FERC) voted Feb. 15 to extend the completion deadline of Tellurian’s Driftwood project to April 2029.

Near Lake Charles, Louisiana, the Driftwood project has already received permitting permission from the U.S. Department of Energy, meaning the facility is not subject to the pause the Biden administration placed on new LNG projects in January.  The project includes a pipeline and an LNG export terminal that will have a capacity of about 27.6 MMmt/year when completed.

According to the FERC, Tellurian applied for the extension in October 2023. In the extension application, the company stated it had worked diligently toward project completion but had been delayed by COVID-19’s effect on the supply chain. The company also said it needs time to secure customers and financing.

Tellurian now says the earliest phase 1 of the project could be completed is in late 2027.

Environmental group Sierra Club argued against the extension request, saying that Tellurian has mismanaged the project and that decision requires additional study to assess the environmental impact of the project. The FERC rejected the Sierra Club’s arguments in its decision.

Earlier in February, Houston-based Tellurian announced plans to sell its natural gas assets in the Haynesville Shale, using part of the proceeds to focus on development of the Driftwood project.

LNG Tellurian
Driftwood LNG January 2024 (Source: Business Wire)

“Tellurian thanks FERC for working with our team to ensure the safe construction of Driftwood LNG. FERC has been diligent in its oversight, having visited the site 19 times already, and provided careful examination of this extension request,” said Tellurian CEO Octávio Simões. “We have invested over a billion dollars into Driftwood LNG’s development, we have our approval to export and all applicable construction permits, and we are eager to provide the world with liquefied natural gas exports.”

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