Tellurian updates on Driftwood LNG work

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.

Most Popular

Golar progresses FLNG growth plans

Golar LNG said it had signed a final engineering study to confirm EPC price and delivery for a 5 mtpa MKIII FLNG.

Cheniere takes FID on two more Corpus Christi LNG trains

US LNG exporting giant Cheniere has made a positive final investment decision to build two more midscale trains at its Corpus Christi LNG plant in Texas. The company has also issued full notice to proceed to Bechtel.

Mexico Pacific seeks DOE extension

Mexico Pacific, the developer of the planned 15 mtpa Saguaro Energia LNG export project, is seeking a seven-year extension of its export deadline from the US Department of Energy.

More News Like This

Woodside, Jera ink non-binding winter LNG supply deal

A unit of Australian LNG player Woodside and Japan's Jera have entered into a non-binding heads of agreement for the sale and purchase of LNG cargoes during Japan’s peak winter period.

Woodside inks non-binding LNG supply deal with Petronas

Australia's Woodside has signed a non-binding heads of agreement with Malaysia's Petronas to supply the latter with liquefied natural gas (LNG) from its global portfolio. The deal may include supplies from Woodside's Louisiana LNG project in the US.

Woodside’s Louisiana LNG gets FERC extension

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

NextDecade, Bechtel agree $9 billion EPC deals for two Rio Grande LNG trains

US LNG firm NextDecade and compatriot Bechtel have finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.