Earlier today Tellurian Inc. (ticker: TELL) and Bechtel Oil, Gas and Chemicals, Inc. announced in a press release that the two companies have entered into four fixed price, lump sum turnkey agreements for a price totaling $15.2 billion.

The cost will cover the engineering, construction and procurement for Driftwood LNG, a LNG export facility located near Lake Charles, Louisiana. With an EPC cost of the Driftwood LNG at $550 per tonne, the facility will be one of the lowest cost liquefaction construction projects worldwide.

Features of Driftwood LNG

  • 20 liquefaction units with each unit expected to produce 1.38 million tonnes per annum (mtpa) of LNG.
  • Liquefaction technology from Integrated Pre-cooled Single Mixed Refrigerant (IPSMR®) process
  • 20 GE refrigeration compressors, each driven by GE aero derivative natural gas turbines
  • Three 235,000 cubic meter, full containment LNG storage tanks
  • Three marine loading berths

Driftwood LNG will be constructed in four separate stages

  • Phase 1: Up to 11 mtpa of LNG from 8 units, storage tanks 1 & 2, loading berth 1 and related utilities
  • Phase 2: Up to 5.5 mtpa of LNG from 4 units, loading berth 2 and related utilities
  • Phase 3: Up to 5.5 mtpa of LNG from 4 units, storage tank 3, loading berth 3 and related utilities
  • Phase 4: Up to 5.5 mtpa of LNG from 4 units and related utilities

Source: Tellurian Inc.

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