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Bechtel signs $15.2bn EPC deals for Driftwood LNG project in Louisiana, US

EBR Staff Writer Published 14 November 2017

Bechtel has signed four engineering, procurement and construction (EPC) agreements, worth $15.2bn, with Tellurian for 27.6 million tons per annum (mtpa) capacity Driftwood LNG export facility in the US.

Planned to be built in four phases near Lake Charles, Louisiana, the Driftwood LNG will comprises 20 liquefaction units, each with LNG production capacity of up to 1.38 million tons per annum (mtpa) as well as 20 GE refrigeration compressors.

Additional features of the project include three 235,000m³ full containment LNG storage tanks and three marine loading berths.

Driftwood LNG facility will use liquefaction technology from Chart Industries' Integrated Pre-cooled Single Mixed Refrigerant (IPSMR) process.

The first phase of the project involves construction of up to 11mtpa of LNG from 8 units, storage tanks 1 & 2, loading berth 1 and related utilities while second phase involves building of up to 5.5mtpa of LNG from 4 units, loading berth 2 and related utilities.

The third phase includes up to 5.5mtpa of LNG from 4 units, storage tank 3, loading berth 3 and related utilities followed by fourth phase of up to 5.5mtpa of LNG from 4 units and related utilities.

Tellurian president and CEO Meg Gentle said: "The agreements with Bechtel guarantee performance and secure the EPC cost of Driftwood LNG at $550 per ton, 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.”

Construction of the Driftwood LNG project is planned to commence in 2018 with the first LNG production scheduled in 2022.

The project, however, is subject to Tellurian making a final investment decision and approval from the US Federal Energy Regulatory Commission.

Bechtel Oil, Gas and Chemicals president Alasdair Cathcart said: “Our collaboration with Tellurian on the Driftwood LNG project will deliver a low-cost LNG facility that is more flexible to changing market conditions.”


Image: Bechtel will build Driftwood LNG export facility in US in four phases. Photo: courtesy of Bechtel Corporation.