US LNG firm Tellurian said it has issued a limited notice to proceed to compatriot Bechtel under its executed engineering, procurement and construction (EPC) contract to begin construction of phase one of the Driftwood LNG export terminal in Louisiana.
Bechtel’s first activities include demolition, civil site preparation and construction of critical foundations, while Baker Hughes would progress manufacturing two of the natural gas turbines required for phase one of the project, according to a Tellurian statement on Monday.
Phase one will include two LNG plants near Lake Charles with an export capacity of up to 11 million tonnes per annum (mtpa). The full project would have 27.6 mtpa liquefaction capacity.
The firm’s co-founder and executive chairman, Charif Souki, confirmed earlier this year that Tellurian would start construction on the first phase in April.
Total development costs for this phase would reach about $11.9 billion.
Tellurian started preparatory works on the Driftwood site last year and also exercised a long-term site lease.
In addition, the Houston-based firm signed three 10-year LNG supply deals for the Driftwood project for a total of 9 mtpa. These include contracts with Gunvor, Vitol as well as Shell.
“Energy security is a leading concern in many countries today and the United States must do our part to supply LNG to the global market as quickly as possible,” president and CEO, Octavio Simoes, said.
“Beginning construction now allows Tellurian to deliver upon our robust schedule for first LNG in 2026 while we complete the project financing,” he said.
“We are well advanced in Driftwood LNG’s detailed engineering and major equipment orders, and we have completed all the owners’ projects required for us to turn the site over to Bechtel,” Simoes said.
