Tellurian has decided to push the start of construction on its $27 billion Driftwood LNG project near Lake Charles to 2021 and is reconsidering the need to build its $4.2 billion Permian Global Access Pipeline to serve the Driftwood facility.
As Construction Dive reports, reduced demand, low natural gas prices and the COVID-19 pandemic have made it difficult for Tellurian to firm up deals with equity investment partners, according to comments made by CEO Meg Gentle that were first reported by S&P Global. She said the company expects to be able to have the necessary agreements in place in the first half of 2021 so that it can secure financing and start construction.
When Tellurian awarded Bechtel $15.2 billion in contracts for construction of the project’s export facility in 2017, construction was expected to start in 2018, with the facility operational in 2022.
Engineering for the project is 30% complete. Both the pipeline and export facility have secured all necessary permits.