US LNG terminal developer Tellurian has secured more time from the US FERC to complete the construction of its Driftwood LNG project in Louisiana.
In April 2019, the FERC authorised Driftwood LNG to site, construct, and operate facilities for the liquefaction and export of natural gas in Calcasieu Parish, Louisiana.
As well as the 27 million tonnes per annum LNG terminal, the regulator also authorised Driftwood Pipeline to build a new 48-inch interstate natural gas pipeline system in Evangeline, Acadia, Jefferson Davis, and Calcasieu Parishes.
Authorisation was on the basis that the Driftwood terminal and pipeline should be fully completed and made available for service within seven years.
However, Driftwood told the FERC in a filling dated 4 October that it would need an additional 36 months to complete construction of the LNG terminal and the pipeline and place the entire project in service.
FERC granted the extension, giving both Driftwood LNG and the pipeline until April 18, 2029.
‘Because we find that Driftwood has demonstrated good cause for delay and progress in developing the projects, we will grant the requested three-year extension of time to complete construction of the Driftwood LNG terminal and Driftwood Pipeline project,’ the FERC says.
Under the first phase, Tellurian aims to build two LNG plants near Lake Charles with an export capacity of up to 11 mtpa. However, the company is still working to secure financing for the project.
Tellurian expects the first phase to cost about $14.5 billion (€13.4 billion) with about of $6 billion equity investment.
