Environmental organisation Sierra Club has called on the US Federal Energy Regulatory Commission (FERC) to reject Tellurian’s request for an extension of the construction timeline for the Driftwood LNG project.

The under-construction liquefied natural gas (LNG) project in Southwest Louisiana is facing further hurdles owing to financial issues at Tellurian, said Sierra Club.

In its latest quarterly report to the US Securities and Exchange Commission (SEC), Tellurian expressed “substantial doubt about the Company’s ability to continue as a going concern.”

Citing the report, Sierra Club said that it revealed a Q3 2023 net loss of $65.4m for the LNG developer. The environmental organisation further claimed that Tellurian’s stock has witnessed a decline exceeding 50% in recent weeks.

Last month, Tellurian sought a three-year extension to complete the project as per a government filing. In this regard, the company requested the FERC to extend its license until 2029 for finishing the 27.6 million metric tons per annum (MTPA) project.

If realised as planned, the Driftwood LNG facility, situated on the Calcasieu River south of Lake Charles, would rank among the largest terminals along the Gulf Coast, dedicated to the production and export of liquefied methane gas.

The Sierra Club has raised concerns, contending that the project would aggravate environmental injustices in Louisiana communities and result in the destruction of coastal wetlands that are vital to the livelihoods of local fishermen and shrimpers.

Sierra Club staff attorney Louisa Eberle said: “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 crystalises what we already knew: Driftwood’s delays are of the company’s own making.

“FERC should refuse Driftwood’s request for this undeserved extension.”

In September 2023, Tellurian announced an agreement with Baker Hughes for the supply of eight main refrigerant compression packages for the first phase of the Driftwood LNG project. At that time, Tellurian indicated that the project is aiming to achieve its initial LNG production in 2027.