Tellurian gets OK to begin site prep, demo work for Driftwood LNG

(Courtesy Tellurian Inc.) An artist's rendering of the proposed Driftwood LNG

Federal regulators have authorized Tellurian site preparation and demolition work at the site of its planned Driftwood LNG export terminal project in Louisiana.

The order from the Federal Energy Regulatory Commission comes less than three months after Tellurian signed a $2.5 billion deal with Indian oil and natural gas company Petronet.

FERC official issued a permit for the Driftwood LNG project in April, authorizing the facility along the Calcasieu Ship Channel in Lake Charles to make up to 27.6 million metric tons of LNG per year.

Tellurian has until April 2024 to complete construction and bring all of its proposed production units into service.

Additional partners include Total SA, General Electric Co and Bechtel, which has a $15.2 billion contract to build the liquefaction facility at the center of the project. Pipelines, reserves and other costs make up the rest of the $27.5 billion price tag of the project.