Tellurian Back in the Saddle. For Now.

Tellurian Back in the Saddle. For Now.

After several fits and starts that threatened to derail the proposed Driftwood LNG export terminal, Houston-based Tellurian has announced the project is back on track with a new schedule. Reese Energy Consulting today is following the latest news from Tellurian, which looks to begin construction this summer on the $16.8 billion Driftwood LNG plant located along the Calcasieu River, south of Lake Charles, La. The company is still awaiting an investment decision from India’s Petronet—the project’s largest at $2.5 billion for 5 million TPA. A quick rebound of U.S. LNG exports post-COVID no doubt has lit a fire in the belly of LNG producers with similar proposed projects on the table. However, Tellurian believes Driftwood is the closest contender to cue the hammers and saws. Phase 1 is slated to go online by 2025 to produce an initial 16.5 million TPA of LNG with additional expansions planned for a final total of five trains and 27.6 million TPA of capacity. Driftwood LNG will process as much as 4 BCFD of feed gas delivered by as many as 14 interstate pipelines.

Tellurian

Tellurian was founded in 2016 by two industry icons, Charif Souki and Martin Houston. Charif set in motion the first liquefied natural gas (LNG) exports from the United States Lower 48 and founded Cheniere Energy. Martin originated the concept of LNG destination flexibility, ensuring that LNG became a commodity.

www.tellurianinc.com

 

What do you think? Learn more about Reese Energy Consulting and our LNG and midstream expertise and services at www.ReeseEnergyConsulting.com.

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Shovel, Meet Dirt

Shovel, Meet Dirt

It’s about as rare as a unicorn these days to watch an oil and gas stock price zoom into the stratosphere, but that’s exactly what happened today in pre-market trading for Houston-based Summit Midstream. Reese Energy Consulting is following the latest news from Summit, which yesterday received a FERC thumbs up to begin construction on the Double E Pipeline and associated midstream facilities. That’s all it took to send the company’s stock soaring by a whopping 51.7% before this morning’s opening bell and settling back to a still impressive 29%. Upon completion in 4Q, the 135-mile Double E will transport 1.35 BCFD of natural gas from the Permian’s Delaware to delivery points near the Waha Hub. Summit owns a 70% operating interest in the pipeline along with ExxonMobil at 30%. The project’s most recent advancement follows a rather smooth-sailing process compared with other proposed pipelines that have either been delayed indefinitely or outright cancelled out of sheer exhaustion from endless court battles. Godspeed, Double E.

Summit Midstream

Headquartered in Houston, Texas, Summit Midstream Partners, LP (NYSE: SMLP) is a value-driven master limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in unconventional resource basins, primarily shale formations, in the continental United States.

www.summitmidstream.com

What do you think? Learn more about Reese Energy Consulting and our range of natural gas and midstream services at www.ReeseEnergyConsulting.com.

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Jumpin’ Jack Flash…

Jumpin’ Jack Flash…

​Hang on to your hats in the gas-rich Haynesville. Reese Energy Consulting today is studying a sequence of events that foretell a nice fat bump for producers there through at least the first half of 2021. With a return to record-breaking LNG exports and record demand for feedstock, the shale play shows Moves like Jagger with production narrowing in on pre-COVID levels at more than 13.5 BCFD. Producers added 10 rigs in 4Q last year for a total of 46—a full fleet recovery in the only major U.S. basin to do so. A beehive of activity to expand much-needed pipeline capacity also is buzzing along with recent projects adding 1.75 BCFD of throughput. Two of those expansion projects helmed by Houston-based Midcoast Energy play a big part to relieve the area’s bottlenecks, and now a third is slated for completion before March. MidCoast’s CJ Express will add compression and pipeline facilities on the company’s 4,000-mile East Texas system, expanding Haynesville capacity by another 1 BCFD and offering producers connectivity to more Gulf Coast demand centers.

What do you think? Learn more about REC’s complete range of midstream services at www.ReeseEnergyConsulting.com.

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An Enterprising Achievement

An Enterprising Achievement

Houston-based Enterprise Products wrapped up a daunting year on a note worth celebrating with service startup of a new 30,000-ton ethylene refrigerated storage tank at its Morgan’s Point, Texas export terminal. The tank offers a nameplate capacity of 1 million tons per year and will accelerate high-volume loading from the facility’s two docks at a rate up to 2.2 million pounds per hour. Ethylene supplies will be sourced from petrochem facilities along the entire Gulf Coast. Reese Energy Consulting today is following the latest news from Enterprise and its marine partner Navigator, which loaded its inaugural vessel at Morgan’s Point on December 23. The Liberia-flagged Navigator Atlas, a 21,000 cubic meter ethylene carrier, departed the terminal on Christmas Eve and is currently located near the Panama Canal. The new tank at Morgan’s Point is supported by a 600-million-pound storage cavern at Enterprise’s Mont Belvieu facility, the nation’s largest NGL market hub. Congratulations to all.

 

Enterprise Products

Enterprise Products Partners L.P. is an American midstream natural gas and crude oil pipeline company with headquarters in Houston, Texas. It acquired GulfTerra in September 2004. The company ranked No. 105 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.

www.enterpriseproducts.com

What do you think? Learn more about REC and our range of upstream, midstream, and downstream services at www.ReeseEnergyConsulting.com.