US LNG firm Tellurian has already invested $750 million in its Driftwood project in Louisiana, as it continues to work to complete the project’s financing, according to the firm’s co-founder and executive chairman, Charif Souki.
Tellurian recently executed definitive agreements to sell $500 million principal amount of senior secured convertible notes.
The firm has now about $800 million in cash and has invested “about $750 million to date in Driftwood,” Souki said in a video update posted on YouTube on Tuesday.
In March, Tellurian issued a limited notice to proceed to Bechtel under its executed EPC contract to begin construction of phase one of the Driftwood LNG plant.
Souki said on Tuesday that the firm has committed to spend another $250 million with Bechtel for Driftwood for the rest of of the year.
Phase one of the project will include two LNG plants near Lake Charles with an export capacity of up to 11 million tonnes per annum (mtpa), while the full project would have 27.6 mtpa liquefaction capacity.
Tellurian already signed three 10-year LNG supply deals for the Driftwood project for a total of 9 mtpa. These include contracts with Gunvor, Vitol as well as Shell.
Total development costs for this phase would reach about $11.9 billion.
Tellurian recently sent its May construction report to US FERC describing the early site activities.
Bechtel’s first activities include demolition, civil site preparation and construction of critical foundations, while Baker Hughes will progress manufacturing two of the natural gas turbines required for phase one of the project.
Souki said that Tellurian “is still on schedule” to deliver LNG in the first quarter of 2026, adding that the financing “will fall into in place in the proper order”.