Tellurian Inks $15.2bn EPC With Bechtel for Driftwood LNG
US LNG developer Tellurian said November 13 it had entered into four fixed-price agreements with Bechtel Oil, Gas and Chemicals totalling $15.2bn for the engineering, procurement and construction (EPC) of its 26mn tons/year Driftwood LNG project near Lake Charles, Louisiana.
The agreements cover all major components of the facility, including 20 liquefaction units, each rated at 1.38mn tons/year, 20 GE refrigeration compressors, three 235,000 m3 storage tanks and three marine loading berths.
“The agreements with Bechtel guarantee performance and secure the EPC cost of Driftwood LNG at $550 per ton, one of the lowest-cost liquefaction construction projects worldwide,” Tellurian CEO Meg Gentle said.
Tellurian applied to the US Federal Energy Regulatory Commission (Ferc) in April for Driftwood, which it said would be developed in four phases, with Phase 1 rated at 11mn tons/year of capacity from eight units, and consisting of two storage tanks and one loading berth. The remaining three phases would each be rated at 5.5mn tons/year.
Construction would begin in 2018, following regulatory approval from Ferc and a final investment decision. First LNG would be produced in 2022, while full operations would begin in 2025.
Dale Lunan