Tellurian has awarded contracts worth $15.2bn to Bechtel Oil, Gas and Chemicals for the engineering, procurement and construction (EPC) of Driftwood LNG, located near Lake Charles, Louisiana, US.
The proposed liquefied natural gas (LNG) export facility includes 20 liquefaction units, each having slated production capacity of up to 1.38 million tonnes per annum (mtpa), three 235,000m³ LNG storage tanks and three marine loading berths.
In addition, the facility will also adopt liquefaction technology from Chart Industries’ integrated pre-cooled single mixed refrigerant (IPSMR) process; and 20 General Electric Corporation (GE) refrigeration compressors, each powered by GE aero-derivative natural gas turbines.
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 and turnkey EPC agreements concludes 18 months of open collaboration among Bechtel, Chart Industries, GE and Tellurian.”
Construction of the Driftwood LNG facility will be taken up in four phases.
Subject to Tellurian making a final investment decision and the receipt of an approval from the US Federal Energy Regulatory Commission (FERC), construction of the Driftwood LNG project is anticipated to commence next year, while production of the first gas is expected in 2022.
Bechtel Oil, Gas and Chemicals president Alasdair Cathcart said: “Our collaboration with Tellurian on the Driftwood LNG project will deliver a low-cost LNG facility that is more flexible to changing market conditions.”
The facility will produce up to 27.6mtpa of LNG at full capacity.
