Yahoo Finance Tellurian (TELL) Gets FERC Approval for Driftwood Completion
Tellurian Inc.’s TELL three-year extension, granted by the U.S. Federal Energy Regulatory Commission (“FERC”), to complete the construction of its Driftwood LNG facility has been upheld by the U.S. regulatory body. The FERC denied a rehearing request from the environmental group Sierra Club regarding the extension approval. Sierra Club argued that the Biden administration’s decision to put a pause on its LNG export authorizations to certain countries should impact the Commission’s decision to grant an extension for the construction of Driftwood, noting that Driftwood LNG already had a license to export LNG to the “non-FTA” countries.
The regulatory body did not agree with the argument, stating that the FERC’s analysis was not influenced by the federal government’s decision to temporarily halt its authorization of LNG exports to some other countries. The FERC mentioned that it had valid reasons to grant the extension to Tellurian. To complete the construction of Driftwood LNG, it appeared before the commission and took the necessary actions to proceed with the construction. Driftwood also engaged with the commission staff and received the authorization required to proceed with the construction activities.
Tellurian has invested more than $1 billion to construct Driftwood LNG over several years. The LNG facility, with a capacity of 27.6 million metric tons per annum (mtpa), to be constructed near Lake Charles, LA, has received an extension from the FERC to complete the project by Apr 18, 2029.
Tellurian also recently sold off its integrated upstream assets to Aethon Energy Management in order to pay off its borrowings and proceed with the construction of the LNG facility. Aethon also signed an agreement to purchase 2 mtpa of liquefied natural gas (LNG) from Tellurian’s Driftwood LNG after the completion of the first phase.
Zacks Rank and Key Picks
Currently, TELL carries a Zacks Rank #3 (Hold).
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SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
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