Tellurian-Bechtel deals signed in USA

Tellurian has signed four lump-sum, turnkey contracts worth USD 15.2 billion with EPC firm Bechtel to construct the Driftwood LNG export facility, the gas company announced on Monday.

Construction will take place in four stages, with output totalling around 27.6 million tpy of LNG in 2025. The fully completed facility will include 20 liquefaction units, 20 GE refrigeration compressors, three 235,000-cubic-metre LNG storage tanks and three marine loading berths. In addition, Driftwood LNG will utilise Chart Industries’ liquefaction technology.

With construction scheduled to begin in 2018, phase one will see the most work, with eight liquefaction units, two storage tanks and one loading berth installed. Upon completion of this stage in 2022, Driftwood LNG’s output is expected to be 11 million tpy. The remaining construction phases will increase the facility’s production by increments of 5.5 million tpy.

According to the company statement, with a cost of USD 550 per tonne of LNG, Driftwood LNG is among the lowest-cost liquefaction projects in the world.

“Execution of the lump sum, turnkey EPC agreements concludes 18 months of open collaboration among Bechtel, Chart Industries, GE and Tellurian,” Meg Gentle, CEO of Tellurian, said in the statement. “We have worked as a team to reduce construction costs and improve operating reliability and efficiency.”

The facility will be constructed near Lake Charles, Louisiana.