Tellurian: Driftwood LNG construction progresses

US LNG terminal developer Tellurian is moving forward with the initial construction work at its Driftwood LNG terminal in Louisiana, while it still works on securing financing for the project worth about $14.5 billion.

Tellurian issued a limited notice to proceed to compatriot engineering and construction giant Bechtel in March last year.

Under the first phase, Tellurian aims to build two LNG plants near Lake Charles with an export capacity of up to 11 mtpa.

The firm released a drone footage (below) showing the activities at the Driftwood LNG site in August.

According to Tellurian, Bechtel has completed piling work for the first plant and also concrete pouring for all plant one compressor foundations.

Bechtel also completed more than 50 percent of pilling work for the LNG storage tanks, it said.

Tellurian’s co-founder and executive chairman, Charif Souki, recently said that the company’s focus lately has been on two areas.

The first is Driftwood LNG, where the company continues to drive piles with Bechtel and continues to build the foundation, he said.

“And that effort will continue with the second notice to proceed for the balance of this year and half of next year and we’ll prepare the site for the final notice to proceed,” Souki said.

Moreover, Souki said that the “next step forward on Driftwood is to start securing long-lead items, mainly the turbines and the compressors.”

Souki said that Tellurian has spent up to date $16 million dollars securing the turbine purchases and will continue to work with Baker Hughes for these deliveries.

“So look for more news on that,” he said.

“When we finalize this, we will have spent $1.5 billion on Driftwood to prepare it for the final notice to proceed,” he said.

Tellurian’s latest corporate presentation posted on its website shows the Driftwood capital structure includes $7 billion bank debt, $2 billion lease/mezzanine financing, $1.8 billion partner equity, $1.5 billion Tellurian equity, and also $2.5 billion contingent equity.

If the six months of commissioning LNG cargoes cover the contingent equity, the contingent equity will not be funded, according to Tellurian.

Most Popular

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

Golar chairman says FLNG industry set for ‘massive’ growth

Golar LNG will continue to expand its fleet of floating LNG production units in an industry set for "massive" growth, according to Golar LNG's chairman, Tor Olav Trøim.

Energy Transfer, Kyushu Electric ink long-term Lake Charles LNG deal

Energy Transfer, the developer of the proposed Lake Charles LNG export facility in Louisiana, has signed a long-term supply deal with Japan's Kyushu Electric Power.

More News Like This

Woodside’s Louisiana LNG seeks FERC extension

Woodside is seeking an additional eight-month extension from the US FERC to complete and put into service its Louisiana LNG export facility.

Aramco plans to join Woodside’s Louisiana LNG project

Saudi Arabia’s energy behemoth Aramco plans to take a stake in Woodside's Louisiana LNG export project.

Wood bags Louisana LNG pipeline gig from Woodside

UK-based consulting and engineering firm Wood has secured a contract from Australian LNG player Woodside for the latter's Line 200 pipeline project, which will deliver natural gas to the recently approved Louisiana LNG project.

BP to supply feed gas to Woodside’s Louisiana LNG

UK-based energy giant BP has agreed to supply feed gas to Woodside's three-train, 16.5 mtpa Louisiana LNG export project.