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Tellurian signs agreements with Bechtel to deliver Driftwood LNG

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LNG Industry,

Tellurian Inc. and Bechtel Oil, Gas and Chemicals, Inc. have entered into four fixed price, lump sum turnkey agreements totaling US$15.2 billion for the engineering, procurement and construction (EPC) of Driftwood LNG, a LNG export facility proposed near Lake Charles, Louisiana.

Driftwood LNG includes:

  • 20 liquefaction units, each expected to produce up to 1.38 million tpy of LNG.
  • Liquefaction technology from Chart Industries' proprietary Integrated Pre-cooled Single Mixed Refrigerant (IPSMR®) process.
  • 20 GE refrigeration compressors, each driven by GE aero derivative natural gas turbines.
  • Three 235 000 m3 full containment LNG storage tanks.
  • Three marine loading berths.

Driftwood LNG will be constructed in four phases, with each phase beginning operations on a staggered basis:

  • Phase 1: Up to 11 million tpy of LNG from 8 units, storage tanks 1 & 2, loading berth 1 and related utilities.
  • Phase 2: Up to 5.5 million tpy of LNG from 4 units, loading berth 2 and related utilities.
  • Phase 3: Up to 5.5 million tpy of LNG from 4 units, storage tank 3, loading berth 3 and related utilities.
  • Phase 4: Up to 5.5 million tpy of LNG from 4 units and related utilities.

President and CEO Meg Gentle said, "The agreements with Bechtel guarantee performance and secure the EPC cost of Driftwood LNG at US$550/t, one of the lowest-cost liquefaction construction projects worldwide. Execution of the lump sum, turnkey EPC agreements concludes 18 months of open collaboration among Bechtel, Chart Industries, GE and Tellurian. We have worked as a team to reduce construction costs and improve operating reliability and efficiency."

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