Tellurian Inc. TELL, through its wholly-owned subsidiary, Driftwood Pipeline LLC, filed an application with the Federal Energy Regulatory Commission (“FERC”) to construct and operate the newly-proposed Line 200 and 300 pipeline project in Louisiana.
The Line 200 pipeline project involves a 37-mile dual 42-inch interstate pipeline system, which will originate at Ragley in Beauregard Parish and end at Carlyss in Calcasieu Parish of Louisiana. The pipeline will be constructed in two phases, of which phase one is Line 200 and phase two is Line 300. Notably, Line 300 involves a 31-mile pipeline, which could be in service by December 2026.
The new pipeline system will offer increased availability of supplies to address the rising demand from the industrial, petrochemical, manufacturing and Liquefied Natural Gas ("LNG") facilities in and around the Lake Charles area. It is expected to connect the supply gap located north of Lake Charles to the demand located within and south of the area.
As part of the design, Driftwood Pipeline is planning to deploy electric-driven compression, which will be supplied by Baker Hughes BKR, to reduce the pipeline’s carbon emissions by more than 99%. Markedly, the project will result in a significant reduction of nearly one million tons of direct greenhouse gas emissions per year.
Tellurian is planning to sign a long-term lease for its proposed Driftwood LNG facility and start preparing the site for construction. Notably, the Driftwood LNG export terminal will be located near the proposed Line 200 and Line 300 expansion pipeline system. The pipeline expansion is part of a larger system network planned by the company to supply LNG to its Driftwood facility.
The latest pipeline design offers significant results in emission reduction and takes Tellurian a step ahead to implement its overall strategy to support and maintain the world’s energy requirements and environmental conditions. The company expects to receive FERC approval by the end of 2022 and plans to begin construction activities in 2024.
Company Profile & Price Performance
Headquartered in Houston, TX, Tellurian is a liquefied natural gas developer.
Shares of the company have outperformed the industry in the past six months. Its stock has gained 203.7% compared with the industry’s 34.8% growth.
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Zacks Rank & Stocks to Consider
The company currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are Repsol SA REPYY and Exxon Mobil Corporation XOM, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, the Zacks Consensus Estimate for Repsol’s 2021 earnings has been raised by 21.8%.
Exxon’s earnings for 2021 are expected to rise 13% year over year.
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