Houston-based Tellurian says it plans to wrap up commercial agreements in the next several weeks to support the first phase of construction on the proposed $16.8 billion Driftwood LNG export terminal. But the Lake Charles, La., project has its share of skeptics. Reese Energy Consulting today is studying the latest news from Tellurian, which reports the company is in talks with as many as five LNG buyers for volumes Tellurian will market independent of any private equity backing it’s still searching for. The only current deal in play is a 2019 agreement with Total for 1 million TPA of partner volumes and 1.5 million TPA of marketing volumes—but even that is a bit uncertain: If Tellurian doesn’t declare a FID by end of June, Total can wave bye-bye. Meanwhile, Tellurian says the Total agreement won’t go forward in its present form and will need to be amended. Phase I construction of Driftwood, slated for completion in 2025, would produce an initial 16.5 million TPA with expansions planned for a total of five trains and 27.6 million TPA of capacity.
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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.