Bechtel has signed a $15.2bn deal with Driftwood LNG LLC, a Tellurian company, to deliver liquefaction construction projects near Lake Charles in Louisiana, U.S.

Construction of the Driftwood LNG project is expected to begin in 2018 with the first liquefied natural gas produced in 2022, subject to Tellurian making a final investment decision and a permit from the U.S. Federal Energy Regulatory Commission.

The four agreements cover four phases of the construction process, as production plants are progressively brought online. At full capacity, the facility will produce up to 27.6 million tonnes per annum (mtpa) of LNG.

The project includes 20 liquefaction units, each expected to produce up to 1.38 million tonnes per annum (mtpa) of LNG; liquefaction technology from Chart Industries’ proprietary Integrated Pre-cooled Single Mixed Refrigerant process; 20 GE refrigeration compressors, each driven by GE aero derivative natural gas turbines; three 235,000 cubic meter, full containment LNG storage tanks and three marine loading berths.

Tellurian President and CEO, Meg Gentle said: “The agreements with Bechtel guarantee performance and secure the EPC cost of Driftwood LNG at $550 per tonne, one of the lowest-cost liquefaction construction projects worldwide. Execution of the lump sum, turnkey EPC agreements concludes 18 months of open collaboration among Bechtel, Chart Industries, GE and Tellurian. We have worked as a team to reduce construction costs and improve operating reliability and efficiency. Bechtel is a global leader in engineering, procurement and construction of LNG facilities, having delivered 42 LNG trains on 17 projects in 10 countries. Today, production on Bechtel-built facilities accounts for 30% of global LNG capacity. We are proud to work together on the next generation of U.S. LNG exports.”

President Bechtel Oil, Gas and Chemicals, Alasdair Cathcart said: “Bechtel’s history is one of groundbreaking projects at the forefront of the industry. Our collaboration with Tellurian on the Driftwood LNG project will deliver a low-cost LNG facility that is more flexible to changing market conditions. Our record of completing 11 LNG trains in the past three years is unmatched in the industry and we look forward to delivering Driftwood LNG by deploying our proven self-perform model with fully integrated engineering, procurement and construction activities throughout the project life-cycle.” 

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16th Nov 2017

16th November 2017