Tellurian Receives FERC Extension for Driftwood LNG

Rhea-AI Summary

Tellurian Inc. (NYSE American: TELL) receives an extension from FERC for the construction of its Driftwood LNG facility, with a completion deadline of April 18, 2029, and a capacity of ~27.6 million tonnes per annum. CEO Octávio Simões expresses gratitude to FERC for their cooperation and commitment to safe construction practices.

Insights

Energy Market Analyst

The extension granted by the FERC for the construction of Tellurian's Driftwood LNG facility has significant implications for the energy sector. The facility's projected capacity of approximately 27.6 million tonnes per annum positions it as a substantial player in the global LNG market. This development is expected to enhance Tellurian's competitive edge by potentially increasing the United States' share in the international LNG exports market.

From an energy supply perspective, the completion of such a large-scale project could contribute to stabilizing LNG prices by increasing supply. However, the long lead time until 2029 suggests that any impact on supply and pricing would not be immediate. Investors should monitor Tellurian's progress closely, as delays or cost overruns in such capital-intensive projects could affect the company's financial health and stock performance.

Financial Analyst

The announcement of over a billion dollars invested in the Driftwood LNG project by Tellurian is a considerable financial commitment that underscores the project's importance to the company's growth strategy. The ability to secure an extension for construction completion provides Tellurian with a more flexible timeline, which could be advantageous in managing capital expenditure and potentially securing additional financing or contracts.

For shareholders and potential investors, the progress of Driftwood LNG is a critical factor to watch, as it will likely be a significant driver of future revenue. However, the capital-intensive nature of the project means that it is also a source of risk, particularly if there are further delays or if the market conditions for LNG change unfavorably in the interim period.

Environmental and Regulatory Compliance Expert

The FERC's diligent oversight, including 19 site visits, highlights the regulatory complexities associated with large energy infrastructure projects. Compliance with environmental and safety standards is paramount, not only for regulatory approval but also for social license to operate. Tellurian's acknowledgment of FERC's role in ensuring safe construction is crucial, as it reflects the company's commitment to meeting high regulatory standards.

For stakeholders concerned about environmental impact, the construction and operation of such a large LNG facility raise questions about emissions and long-term environmental footprint. It is important for Tellurian to maintain transparency and continue to engage with stakeholders on environmental management throughout the construction phase and once the facility becomes operational.

HOUSTON--(BUSINESS WIRE)-- Tellurian Inc. (Tellurian) (NYSE American: TELL) announced today that the U.S. Federal Energy Regulatory Commission (FERC) has issued an extension to its order authorizing the construction of Tellurian’s Driftwood LNG facility near Lake Charles, Louisiana. As extended, the order requires construction to be completed by April 18, 2029. Tellurian applied for the extension last year to ensure it had enough time to complete the construction of all five plants of the facility. When completed, the facility will have a capacity of ~27.6 million tonnes per annum (mtpa).

Driftwood LNG January 2024 (Photo: Business Wire)

Chief Executive Officer Octávio Simões said, “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. 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.”

About Tellurian Inc.

Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of LNG marketing and infrastructure assets that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the NYSE American under the symbol “TELL”.

For more information, please visit www.tellurianinc.com. Follow us on Twitter at twitter.com/TellurianLNG

CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words “anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,” “forecast,” “initial,” “intend,” “may,” “plan,” “potential,” “project,” “proposed,” “should,” “will,” “would,” and similar expressions are intended to identify forward- looking statements. Forward-looking statements herein relate to, among other things, the capacity, timing, and other aspects of the Driftwood LNG project. These statements involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. These risks include the matters discussed in Item 1A of Part I of the Annual Report on Form 10-K of Tellurian for the fiscal year ended December 31, 2022, filed by Tellurian with the Securities and Exchange Commission (the SEC) on February 22, 2023, and other Tellurian filings with the SEC, all of which are incorporated by reference herein. The forward-looking statements in this press release speak as of the date of this release. Although Tellurian may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240214672559/en/

Media:

Joi Lecznar

EVP Public and Government Affairs

Phone +1.832.962.4044

joi.lecznar@tellurianinc.com



Investors:

Matt Phillips

Vice President, Investor Relations

Phone +1.832.320.9331

matthew.phillips@tellurianinc.com

Source: Tellurian Inc.

FAQ

What is the ticker symbol for Tellurian Inc.?

The ticker symbol for Tellurian Inc. is TELL.

Where is Tellurian's Driftwood LNG facility located?

Tellurian's Driftwood LNG facility is near Lake Charles, Louisiana.

What is the capacity of Tellurian's Driftwood LNG facility?

The facility will have a capacity of approximately 27.6 million tonnes per annum.

When is the deadline for the completion of construction at Tellurian's Driftwood LNG facility?

The construction must be completed by April 18, 2029, as per the extension granted by FERC.

Who expressed gratitude to FERC in the press release?

CEO Octávio Simões expressed gratitude to FERC for their cooperation and oversight in the construction of Driftwood LNG.

How much has Tellurian invested in the development of Driftwood LNG?

Tellurian has invested over a billion dollars in the development of Driftwood LNG.

How many times has FERC visited the Driftwood LNG site?

FERC has visited the site 19 times to provide oversight and examination of the construction process.