Driftwood LNG Gets Closer to FID in Deal with BHI, Court Win

Driftwood LNG, a 27.6 million tonnes of LNG per year facility that will cost on the order of $14.5 billion to build, has not made an official final investment decision (FID) to proceed with the FERC-approved project. However, construction began on the project in March 2022 (see Tellurian Begins Construction of Driftwood LNG with No FID). The Sierra Club, a radicalized organization, tried to stop construction by claiming that a permit issued by the Army Corps of Engineers was unlawful (see Radical Sierra Club Tries to Block Driftwood LNG in 5th Circuit). The lawsuit was thrown out yesterday by the U.S. Court of Appeals for the Fifth Circuit (5th Circuit). Also in the news: Tellurian, the builder, announced a deal with Baker Hughes to supply compressors for Phase 1 of the facility. The dismissed lawsuit and the Baker Hughes deal cause us to conclude that Driftwood has made significant progress toward an FID.

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