Tellurian Signs $15.2 billion Agreements with Bechtel to Deliver Driftwood LNG at $550 per tonne

Tellurian and Bechtel Oil, Gas and Chemicals have entered into four fixed price, lump sum turnkey agreements totaling $15.2 billion for the engineering, procurement and construction (EPC) of Driftwood LNG, a liquefied natural gas (LNG) export facility proposed near Lake Charles, Louisiana. Driftwood LNG includes:
Twenty 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 (IPSMR®) process;
Twenty 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.

Driftwood LNG will be constructed in four phases, with each phase beginning operations on a staggered basis:
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

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.'