US LNG firm Tellurian, developer of the Driftwood LNG export facility in Louisiana, said that its unit Driftwood Pipeline has awarded a contract to compatriot energy services firm Baker Hughes.
Under the deal, Baker Hughes will provide electric-powered integrated compressor line (ICL) technology and turbomachinery equipment for Lines 200 and 300, a natural gas transmission project, proposed to be located in Beauregard and Calcasieu Parishes, in southwest Louisiana.
According to a statement by Tellurian, this contract marks the first time Baker Hughes would install its ICL decarbonization technology for pipeline compression in North America.
The project will initially include four 19 megawatt (MW) ICL compressors and other turbomachinery equipment for a total of four compressor trains.
Also, the scope includes a LM6000PF+ gas turbine for backup power for the initial phase of the pipeline project at Driftwood’s Indian Bayou Compressor Station.
$240 million pipeline investment
“This landmark project and technology will eliminate nearly all emissions for the proposed project, which Tellurian is developing to supply natural gas to a constrained capacity area,” Tellurian CEO Octavio Simoes said in the statement.
Joey Mahmoud, president of Tellurian Pipelines, said the firm expects the project would supply upwards of five and one-half billion cubic feet of natural gas daily, with “virtually no emissions”.
“Tellurian is doing its part by making this initial $240 million pipeline investment as part of the broader Driftwood Pipeline system which will provide enhanced supply reliability to meet the area’s projected industrial growth in a cleaner, more sustainable manner,” Mahmoud said.
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.
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.
The firm is still working on the financing of the project in which it already invested about $750 million.