US LNG terminal developer Tellurian, which is being acquired by Australia’s Woodside, released the latest construction update for the first phase of its Driftwood LNG terminal in Louisiana.
Tellurian issued a limited notice to proceed (LNTP) to compatriot engineering and construction giant Bechtel in March 2022.
Under the first phase, Tellurian aims to build two LNG plants near Lake Charles with an export capacity of up to 11 mtpa.
Tellurian claims it has invested more than $1 billion in the project up to date.
The full project would include five plants with a total capacity of about 27.6 mtpa.
According to the June 2024 construction report filed with the US FERC, the Driftwood project continued construction activities including site preparation, excavation and backfill, storm water management, and pile driving activities.
Driftwood LNG also continued activities for water wells as a non-jurisdictional activity under
the early works program.
During June, the project continued maintenance of site roads and drainage efforts, North Pond earthworks, piling in LNG Sump area, and continued work on temporary South Pond.
In July, the project will continue maintenance of site roads and drainage efforts, and complete piling in LNG Sump area.
New deal with Bechtel
According to Tellurian, the firm has signed a new deal with Bechtel for the project.
“On June 27, 2024, Driftwood LNG and Bechtel finalized and executed LNTP 3,” it said.
“Going forward the project will focus on site preservation, maintenance, the procurement of
additional piles, and the continuation of pile installation in Plant 2,” Tellurian said.
Woodside and Tellurian
Australian LNG player Woodside announced on Monday it has entered into a definitive deal to buy Tellurian.
Woodside said the consideration for the transaction is an all-cash payment of about $900 million, or $1.00 per share of outstanding Tellurian common stock, while the implied enterprise value is about $1.2 billion.
In connection with entry into a binding agreement to acquire Tellurian, Woodside will provide a loan to Tellurian of up to $230 million to ensure Driftwood LNG site activity and de-risking activities maintain momentum prior to completion of the transaction, it said.
“Woodside is targeting FID readiness for Phase 1 of the Driftwood LNG development opportunity from the first quarter of 2025,” the company said.
The transaction, which was unanimously approved by both boards of directors, is expected to close in the fourth quarter of 2024, subject to customary closing conditions, including approval from Tellurian and Woodside shareholders and the receipt of regulatory approvals.