It’s been more three years since former CEO of Cheniere Energy Charif Souki and former COO and executive director of BG Group Martin Houston joined forces in forming a new midscale natural gas liquefaction and export company called Driftwood LNG. Their vision: an LNG production and export terminal on 800 acres along the west bank of the Calcasieu River, south of Lake Charles. At the time, the partners noted that the gas industry is “not about the short-term; we are thinking about the energy needs of the world from 2020 to 2040.” Here’s how far the project has come since then.
Driftwood LNG, a subsidiary of Tellurian LNG, is formed by former Cheniere Energy CEO Charif Souki and former BG Group COO Martin Houston.
Driftwood asks the U.S. Federal Energy Regulatory Commission to initiate the pre-filing environmental review process for the LNG export facility and associated pipeline. The following month, the request is approved and draft resource reports are filed in July.
FERC indicates it will prepare an environmental impact statement for the project. Meanwhile, Driftwood LNG asks the U.S. Department of Energy for authorization to export LNG to free trade agreement countries for a period of 30 years and to countries with which the U.S. does not have a free-trade agreement for 20 years.
Total of France announces it has acquired a 23% stake in Tellurian Investments for $207 million, with plans to develop an integrated gas project to deliver LNG to international markets from the Driftwood LNG terminal.
Driftwood receives a permit to export LNG to free trade agreement nations. Tellurian signs an agreement with Credit Suisse Securities to list company shares on the Nasdaq capital market for up to $200 million.
Tellurian files a formal FERC application.
Bechtel completes a front-end engineering and design study for the project.
Tellurian offers 10 million shares to fund detailed engineering, raising $94.8 million. In January, the company announces it has raised an additional $14.5 million via an over-allotment option.
Tellurian starts a nonbinding open season to secure shippers for its Permian Global Access pipeline connecting the Permian Basin in Texas to southwest Louisiana for Driftwood LNG. This same month, Bechtel also makes a $50 million equity investment in the company.
FERC issues a favorable environmental impact statement for Driftwood.
FERC grants authorization to build the Driftwood LNG project. A final investment decision is expected this year, with project completion in 2026.