Sierra Club Presses FERC to Reject Driftwood LNG Construction Extension as Company’s Profits Nosedive


Carolyn Morrisroe,
Grace Nolan, 

LAKE CHARLES, La. The under-construction Driftwood LNG project in Southwest Louisiana faces further obstacles amid financial woes at parent company Tellurian Inc. In a letter filed yesterday with the Federal Energy Regulatory Commission, the Sierra Club urges the agency to deny Tellurian’s request for a three-year extension to FERC’s deadline to have the liquefied methane gas export facility ready for service. Tellurian is seeking to push back the construction completion timeline from 2026 to 2029. 

If completed as proposed, the Driftwood LNG facility, located on the Calcasieu River south of Lake Charles, La., would be one of the largest terminals along the Gulf Coast producing and exporting liquefied methane gas (referred to by the fossil fuel industry as "LNG") It would inflict further harm on Louisiana communities already experiencing environmental injustice and destroy coastal wetlands that are crucial to the livelihoods of local fishermen and shrimpers.

In its recently released quarterly report to the U.S. Securities and Exchange Commission, Tellurian notes that it has “substantial doubt about the Company’s ability to continue as a going concern.” The company reports a third-quarter net loss of $65.4 million, and its stock has declined more than 50 percent in recent weeks. 

Sierra Club’s Nov. 9 supplemental letter to FERC augments its Oct. 26 protest that Tellurian’s worsening financial situation is the reason the Driftwood project has failed to progress, which the organization believes is not grounds for an extension.

In Response, the Sierra Club and Partners Released the Following Statements:

“Driftwood LNG’s attempt to blame the COVID-19 pandemic for its delay in moving this project forward is a red herring. This latest news about Tellurian’s financial status crystalizes what we already knew: Driftwood’s delays are of the company’s own making. FERC should refuse Driftwood’s request for this undeserved extension,” said Louisa Eberle, staff attorney at the Sierra Club.

“Driftwood LNG has already destroyed one of our community’s important fishing spots and the wetlands that protect us from storm surges powered by climate change. Tellurian has been reckless and irresponsible with our fragile ecosystems and shown complete disregard for our health and well-being,” said Cindy Robertson, director of Micah 6:8 Mission.

"Tellurian has always been a high-risk venture in a volatile industry, and its checkered finances have raised red flags for years. The latest insolvency warnings will likely dissuade both investors and potential customers from doing business with Tellurian,” said IEEFA Energy Finance Analyst Clark Williams-Derry.


About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit