Tellurian seeks three-year extension to complete Driftwood LNG project (NYSE:TELL) - Seeking Alpha
Tellurian seeks three-year extension to complete Driftwood LNG project (NYSE:TELL) | Seeking Alpha
Tellurian seeks three-year extension to complete Driftwood LNG project
Tellurian Inc. (TELL) By:
Carl Surran, SA News Editor
5 Comments CHUNYIP WONG/E+ via Getty Images
Tellurian (NYSE: TELL) closed -9.3% in Thursday's trading after it asked the Federal Energy Regulatory Commission for a three-year construction permit extension to complete its Driftwood LNG export facility.
Tellurian ( TELL) is asking FERC to extend its license into 2029 to complete the $25B Louisiana project, which would have a capacity of as much as 27.6M metric tons/year.
Construction appears to be progressing more slowly than expected, as Tellurian ( TELL) told FERC it did not expect to receive key equipment for the plant's phase 1 until 2027 with further equipment for phase 2 development seen pushing full startup out to 2029.
Earlier this year, regulators denied Energy Transfer's request for a second extension to its construction permit for the Lake Charles LNG plant, saying they would not automatically grant second extensions; the company has since applied for a new permit.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.