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LNG World Shipping

Tellurian signs US$15.2Bn EPC deal with Bechtel for Driftwood LNG

Tue 14 Nov 2017 by Karen Thomas

Tellurian signs US$15.2Bn EPC deal with Bechtel for Driftwood LNG
Meg Gentle: low-cost liquefaction, guaranteed

Charif Souki-led Tellurian has set out in detail its plans for Driftwood LNG, having agreed four fixed-price, lump-sum turnkey deals with Bechtel Oil, Gas and Chemicals worth US$15.2Bn for the engineering, procurement and construction works.

Driftwood LNG will comprise 20 liquefaction units, each producing up to 1.38M tonnes a year (mta) of LNG. GE will supply 20 refrigeration compressors, each driven by aero-derivative natural gas turbines.

Driftwood LNG will also have three 235,000 mᶾ storage tanks and three marine loading berths.

Tellurian hopes to reach a final investment decision next year. It will build the project in four phases, starting with an initial 11 mta, comprising eight units, two storage tanks and the first loading berth.

The second phase will add up to 5.5 mta from four additional units and the second loading berth. Phases three and four will each add 5.5 mta from four units.

The agreements enable Tellurian to pledge a price of US$550/tonne for output from the Lake Charles, Louisiana-based project. President and chief executive Meg Gentle hailed the Bechtel deal having made Driftwood LNG “one of the lowest-cost liquefaction projects worldwide”.

Ms Gentle says the lump sum, turnkey EPC deals conclude 18 months’ work with Bechtel, Chart Industries and GE. “We have worked as a team to reduce construction costs and improve operating reliability and efficiency,” she said.

“Bechtel is a global leader in engineering, procurement and construction of LNG facilities, having delivered 42 LNG trains on 17 projects in 10 countries. Production on Bechtel-built facilities accounts for 30% of global LNG capacity.”