Tellurian in $15.2 billion deal with Bechtel to deliver US Driftwood LNG export project
US LNG export project developer, Tellurian and engineering giant Bechtel have signed four deals totaling $15.2 billion for the engineering, procurement and construction (EPC) of the proposed Driftwood LNG project near Lake Charles, Louisiana.
The project includes 20 liquefaction units, each having an expected production capacity of 1.38 million tons per year of LNG and three 235,000 cubic meter storage tanks as well as three marine loading berths.
Driftwood LNG will be constructed in four phases, with each phase beginning operations on a staggered basis, Tellurian said in a statement on Monday.
The first phase will have an 11 mtpa production capacity from eight units together with storage tanks one and two and the first loading berth.
The subsequent three phases to be developed will each bring an additional 5.5 mtpa of production capacity from four units, with loading berths two and three to be constructed in the second and third phase. The remaining storage tank is planned to be developed during the third phase.
Speaking of the agreements Tellurian president and CEO, Meg Gentle said, “the agreements with Bechtel guarantee performance and secure the EPC cost of Driftwood LNG at $550 per tonne, one of the lowest-cost liquefaction construction projects worldwide.”
Execution of the lump sum, turnkey EPC agreements concludes 18 months of open collaboration among Bechtel, Chart Industries, GE and Tellurian, Gentle said.
Tellurian, the company founded by Charif Souki and Martin Houston, is developing a portfolio of natural gas production, LNG trading and infrastructure that includes the 27 mtpa LNG export facility and an associated pipeline.