Tellurian breaks ground on Driftwood LNG
Tellurian said March 28 it had granted a limited notice to Bechtel to kick off construction of its Driftwood LNG production and export facility in Lake Charles, Louisiana.
The announcement begins the first development phase to deliver an export capacity of up to 11mn metric tons/year. Driftwood LNG is being developed in four phases and will see its capacity increase to 27.6mn mt/yr once fully completed.
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Bechtel has secured "major permits" to allow the construction and operation of the new facility and has conducted around 30% of the engineering detail needed to start development. The deal is part of a $15.2bn turnkey engineering, procurement and construction (EPC) contract signed with Bechtel in November 2017.
Bechtel is committed to developing 20 liquefaction units each with 1.4mn mt/yr, with eight of these to be delivered in phase one together with two storage tanks, a loading berth and related utilities.
The company has now closed lease and purchase agreements for around 1,200 acres of real estate, which Tellurian says will ensure there is "ample laydown and deepwater access for shipping."
Bechtel will start by preparing the construction site, demolishing structures and shaping the surface to hold the LNG plant's critical foundations. Two gas turbines required for the first phase of LNG production will be delivered early in the development phase by Baker Hughes, another of the project's contractors.
Tellurian CEO Octavio Simoes said the company was working to complete the project financing, but still expected Driftwood to produce its first LNG batch in 2026.
"Energy security is a leading concern in many countries today and the US must do our part to supply LNG to the global market as quickly as possible," Simoes said. "Beginning construction now allows Tellurian to deliver upon our robust schedule for first LNG in 2026 while we complete the project financing.
"We are well advanced in Driftwood LNG’s detailed engineering and major equipment orders, and we have completed all the owners’ projects required for us to turn the site over to Bechtel.”