US LNG terminal developer Tellurian released the latest construction update for the first phase of 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 2022.
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 said in an update in August 2023 that Bechtel had completed piling work for the first plant and also concrete pouring for all plant one compressor foundations.
According to the April 2024 construction report filed with the US FERC, the Driftwood project has 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 April, the project continued maintenance of site roads and drainage efforts.
The project completed concrete pile installation in tank 1 and it completed remaining LNG sump
excavation and piling in 107R1 pipe rack area.
The project also started remaining piling in 101B1/D1 cold box areas.
In May, the project aims to complete piling in 101B1/D1 cold box areas and start piling in LNG sump area.
Talks continue
Tellurian recently reported a net loss of about $44 million for the quarter ended March 31, 2024, compared to a net loss of $27.5 million for the same period of 2023.
Executive chairman Martin Houston said the company is “laser-focused” on bringing Driftwood to final investment decision.
Driftwood LNG received an extension through 2029 to both the order authorizing construction from the US Federal Energy Regulatory Commission and its Section 404 permit from the US Army Corps of Engineers.
“In addition, we have better aligned our commercial offerings to meet the needs of potential customers, and we are highly encouraged by our ongoing commercial discussions,” Houston said.
Tellurian invested more than $1 billion in Driftwood LNG
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.
In March, Tellurian confirmed that it is exploring a potential sale of the company.
Tellurian also said in its March presentation it expects to take a final investment decision in 2024 to build the first two plants at its Driftwood LNG export plant.
The company said it expects to issue a full notice to proceed to compatriot engineering and construction giant Bechtel to begin construction for for the first phase of the plant in the second half of this year.