News Post
Tellurian hopes to start Driftwood LNG construction as demand picks up.
Tellurian executive chairman Charif Souki recently spoke on the progress around the company’s Driftwood LNG export project in Louisiana. He stated that “I hope that we will be in construction this summer,” and that “There is a strong need for additional liquefaction capacity and we’re probably the project that is the closest to starting construction.”
This new acceleration for the large export project comes as demand has increased over the past month, according to Mr. Souki. Colder climates in Asia and shipping woes at the Panama Canal are possible cause for the recent increase in fuel costs, along with the Asia Pacific region relying more often on LNG for power generation than on coal sources.
Driftwood LNG is one of many LNG projects that were delayed in their construction, due to the coronavirus effect and how customers had been leery of signing long-term commitments. Mr. Souki added that “The system is stressed”, and that over the next seven years, LNG demand around the world is expected to increase by 200 million tons.
If construction does begin in the summer of 2021, then Phase one of Driftwood would be anticipated to begin in 2025 with up to 16.5 MMtpy of LNG. The complete Driftwood project is still expected to have a full capacity for 27.6 MMtpy upon completion.
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