Bechtel signs US$15.2bn in LNG contracts with Tellurian

Article by Helen Tunnicliffe

TELLURIAN has awarded four contracts worth US$15.2bn to Bechtel for the engineering, procurement and construction (EPC) of the vast Driftwood LNG export facility planned near Lake Charles, Louisiana, US.

The facility, once complete, will consist of 20 liquefaction units producing 1.38m t/y of LNG, 20 GE refrigeration compressors, three 235,000 m3 full containment LNG storage tanks, and three marine loading berths. The completed facility will have a total capacity of 27.6m t/y of LNG.

The four lump-sum turnkey agreements are for each of the four phases of the construction of Driftwood LNG facility. Phase 1 will deliver 11m t/y of LNG from eight liquefaction units, storage tanks 1 and 2, loading berth 1 and related utilities. Phase 2 will deliver up to 5.5m t/y of LNG from four liquefaction units, loading berth 2 and related facilities. Phase 3 will add another 5.5m t/y of LNG from four units, storage tank 3, loading berth 3 and related utilities. Phase 4 will add a further 5.5m t/y of LNG from another four units and related utilities.

Construction work is expected to begin in 2018 and the first LNG will be exported in 2022, subject to a final investment decision from Tellurian and acquiring a permit from the US Federal Energy Regulatory Commission.

“The agreements with Bechtel guarantee performance and secure the EPC cost of Driftwood LNG at US$550/t, 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,” said Tellurian president and CEO Meg Gentle.

Article by Helen Tunnicliffe

Senior reporter, The Chemical Engineer

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