Tellurian Inc is withdrawing its application to build the Permian Global Access natural gas pipeline in Texas and Louisiana.
A filing with the U.S. Federal Energy Regulatory Commission spelling out the plans noted that “current market conditions do not support the economic thresholds to pursue the (Permian pipe) further at this time.”
The decision comes as the company is undergoing a major change in leadership. President and CEO Meg Gentle is being replaced by Octávio Simões, former president and CEO of Sempra LNG & Midstream, where he oversaw all LNG and natural gas midstream activities, including Cameron LNG. The company has also named to new independent board members: Jonathan Gross and Jean Abiteboul.
“I watched Octávio put together a complex project at Cameron LNG with admiration,” Tellurian Executive Chairman Charif Souki said in making the announcement. “He and I together are responsible for 75 percent of the U.S. liquefaction capacity and I am delighted now to have the opportunity to work with him on Driftwood LNG, the next big milestone in U.S. liquefaction.”
Tellurian said it “continues to believe that in time the proposed project will provide significant benefits” and it will host a new open season “in the event market conditions rebound and the market needs an additional transportation solution.”
The 625-mile, $4.2 billion Permian pipeline was designed to transport up to 2.3 billion cubic feet per day (bcfd) of gas from the Permian shale in West Texas and eastern New Mexico to southwest Louisiana near where Tellurian wants to build the Driftwood LNG export plant.
Tellurian has also proposed to build the 4.0-bcfd Driftwood, 2.0-bcfd Haynesville Global Access and 2.0-bcfd Delhi Connector gas pipelines in Louisiana. The price tag for all three: $5.1 billion.