The final environmental impact review is in on Driftwood LNG

(Courtesy Tellurian Inc.) An artist's rendering of the Driftwood LNG facility near Lake Charles.

Tellurian Inc. cleared another hurdle last week as U.S. federal regulators issued a positive environmental review for its Louisiana project.

The U.S. Federal Energy Regulatory Commission has issued the final environmental impact statement for Driftwood LNG.

Driftwood is an approximately 27.6 million tons-per-year LNG export facility and an associated 96 mile pipeline, proposed near Lake Charles on the U.S. Gulf Coast.

In a statement, President and CEO Meg Gentle says the company anticipates receiving the agency’s order granting authorization to site, construct and operate our Driftwood project. Tellurian will then make a final investment decision and begin construction in the first half of 2019, with the first LNG expected in 2023.

The company recently announced it has narrowed to a short list the number of companies with which it expects to sign equity investment partnership agreements to help finance construction of Driftwood LNG.

Because liquefaction terminals take about four years to complete, S&P Global Platts reports, many of the active developers such as Tellurian will need to reach final investment decisions this year to be able to start up in the 2023-24 timeframe, during which LNG buyers are expected to have the greatest need for new supply.

Tellurian remains on track to reach a final investment decision and begin construction in the first half of 2019, subject to the agency issuing a permit certificate for the project. The FEIS said approval of the project, with the mitigation measures recommended, would result in low environmental impacts. FERC’s recommended mitigation measures require Tellurian to consult with the U.S. Fish and Wildlife Service to determine whether proposed project activities could affect the eastern black rail—a small marsh bird—or its habitat.