Tellurian Inc. has unveiled plans to cut costs of Phase 1 of Driftwood liquefied natural gas (LNG) export facility by 30% and to trim the number of natural gas pipelines in Phase 1 from four to one, Kallanish Energy reports.
The Texas-based company said the proposed Permian Global Access Pipeline with a capacity of 2 billion cubic feet per day and the Haynesville Global Access Pipeline with the capacity of 2 billion cubic feet per day were being deferred.
That news came in a new investors’ presentation unveiled this week by the company.
The report was also submitted to the U.S. Securities and Exchange Commission.
The proposed Delhi Connector Pipeline with a capacity of 2 billion cubic feet was part of that presentation, but the company later said it had also been deferred, according to media reports.
The only pipeline planned at the moment is the already-approved Driftwood Pipeline with a capacity of 4 billion cubic feet per day.
The other pipelines could be added later as market conditions warrant, the company said.
The latest proposed price tag for Phase 1 is $16.8 billion includes the liquefaction/export terminal and the one pipeline. That phase includes eight liquefaction trains or units.
An additional 12 trains are planned in future phases.
The company said its costs would drop from $1,473 per tonne of LNG to $1,042 per tonne, a reduction of 30% and make Driftwood LNG very competitive.
Last July, the struggling company had announced in a federal filing that it was working to reduce costs on the project.
The previous estimate for the total project had been $27.5 billion.
The Driftwood LNG liquefaction/export terminal is planned near Lake Charles, Louisiana.
The facility has been designed to produce 27.6 million tonnes of LNG per year. It is one of the largest LNG projects being developed.
Tellurian has delayed a final investment decision on the Driftwood LNG facility to 2021.
Full operations would begin at the plant in 2026 or 2027.
The proposed LNG liquefaction/export facility remains financially viable and ready for construction, Tellurian has said.
This post appeared first on Kallanish Energy News.