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Released May 03, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Amid regulatory uncertainty and environmental concerns, liquefied natural gas (LNG) developer Tellurian Incorporated (Houston, Texas) said it was "laser-focused" on bringing its proposed Driftwood export facility to a final investment decision.
In 2022, Tellurian secured the permits necessary for the start of construction at the $15.5 billion Driftwood facility planned for Lake Charles, Louisiana. Phase I will be able to export as much as 1.5 billion cubic feet of LNG per day (Bcf/d). Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from a detailed project report and plant profile.
Since then, however, President Joe Biden put the brakes on new projects while the government examines the environmental impact of LNG export facilities. Critics argue that LNG is still a polluting fossil fuel, with a carbon footprint far greater than cleaner sources of energy such as wind power.
"The energy required to chill, ship and re-gasify the fossil fuel makes it far more carbon-intensive and increases the potential for leakage of dangerous methane," the Natural Resources Defense Council argued in February.
Advocates, however, say LNG is far cleaner than coal or other fossil fuels. Martin Houston, the executive chairman at Tellurian, said his company is keen to get to work on the new export terminal.
"Over the past few months, our senior team has sharpened its focus on stability, financial discipline and execution, and we are laser-focused on bringing Driftwood to final investment decision," he said. "To this end, we continue to take important steps to improve our balance sheet and liquidity position, and we continue to benefit from our strong regulatory standing."
In the face of the pause imposed by the Biden administration, Tellurian in February secured a three-year permit extension to complete construction of its Driftwood export plant. The permit from the Federal Energy Regulatory Commission (FERC) gives the company until April 2029 to complete construction.
Baker Hughes Company (NASDAQ:BKR) (Houston) will supply eight gas turbines, compressors and other infrastructure that supports Tellurian's plans to bring Driftwood online in less than five years. Engineering firm Bechtel Corporation (Reston, Virginia) already has completed the foundations for the compressors.
Consultant firm Rystad Energy finds that the U.S. is the origin of around 7.7% of Asia's imports of LNG, and it supports energy security in the European market by supplementing a market dealing with the loss of Russian supplies due to war-related sanctions.
The broader market may be changing, however. Weaker market prices have incentivized demand in Asia, which saw LNG imports jump 13% in April relative to year-ago levels, Bloomberg reported. Western Europe, meanwhile, saw imports decline 28% year-on-year because of bloated inventories and a warmer-than-usual winter heating season.
Assuming all export facilities are at full capacity, the U.S. is the world leader in LNG exports. The federal government expects exports will increase 16% from current levels by next year to average 16 billion cubic feet per day in 2025.
Tellurian, meanwhile, generated about $25 million in revenue from natural gas during the first quarter, nearly half as much as during the same period last year. The company blamed the downturn on the bear market for natural gas, where prices are down about 20% on the year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
In 2022, Tellurian secured the permits necessary for the start of construction at the $15.5 billion Driftwood facility planned for Lake Charles, Louisiana. Phase I will be able to export as much as 1.5 billion cubic feet of LNG per day (Bcf/d). Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can learn more from a detailed project report and plant profile.
Since then, however, President Joe Biden put the brakes on new projects while the government examines the environmental impact of LNG export facilities. Critics argue that LNG is still a polluting fossil fuel, with a carbon footprint far greater than cleaner sources of energy such as wind power.
"The energy required to chill, ship and re-gasify the fossil fuel makes it far more carbon-intensive and increases the potential for leakage of dangerous methane," the Natural Resources Defense Council argued in February.
Advocates, however, say LNG is far cleaner than coal or other fossil fuels. Martin Houston, the executive chairman at Tellurian, said his company is keen to get to work on the new export terminal.
"Over the past few months, our senior team has sharpened its focus on stability, financial discipline and execution, and we are laser-focused on bringing Driftwood to final investment decision," he said. "To this end, we continue to take important steps to improve our balance sheet and liquidity position, and we continue to benefit from our strong regulatory standing."
In the face of the pause imposed by the Biden administration, Tellurian in February secured a three-year permit extension to complete construction of its Driftwood export plant. The permit from the Federal Energy Regulatory Commission (FERC) gives the company until April 2029 to complete construction.
Baker Hughes Company (NASDAQ:BKR) (Houston) will supply eight gas turbines, compressors and other infrastructure that supports Tellurian's plans to bring Driftwood online in less than five years. Engineering firm Bechtel Corporation (Reston, Virginia) already has completed the foundations for the compressors.
Consultant firm Rystad Energy finds that the U.S. is the origin of around 7.7% of Asia's imports of LNG, and it supports energy security in the European market by supplementing a market dealing with the loss of Russian supplies due to war-related sanctions.
The broader market may be changing, however. Weaker market prices have incentivized demand in Asia, which saw LNG imports jump 13% in April relative to year-ago levels, Bloomberg reported. Western Europe, meanwhile, saw imports decline 28% year-on-year because of bloated inventories and a warmer-than-usual winter heating season.
Assuming all export facilities are at full capacity, the U.S. is the world leader in LNG exports. The federal government expects exports will increase 16% from current levels by next year to average 16 billion cubic feet per day in 2025.
Tellurian, meanwhile, generated about $25 million in revenue from natural gas during the first quarter, nearly half as much as during the same period last year. The company blamed the downturn on the bear market for natural gas, where prices are down about 20% on the year.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
