Driftwood LNG Terminal Construction Scheduled for 2019
Tellurian remains on track to begin construction of the Driftwood LNG export terminal in Louisiana next year with an eye on a 2023 startup, according to a recent report from Reuters. Tellurian is on schedule to announce its partners in the $27.5-billion project sometime in the third or fourth quarter of 2018, company president and CEO Meg Gentle said in the company’s second-quarter earnings release.
Reuters reported that, unlike most other proposed US LNG export projects where gas is liquefied for a fee, Tellurian is offering potential customers the chance to invest in a full range of services from production to pipelines and liquefaction.
The company said it has about 25 customers interested in partnering with and buying gas from the project. Driftwood will have the capacity to produce 27.6 mpta of LNG upon startup, and Tellurian will offer equity interests costing approximately $1,500/tonne. Variable and operating costs are expected to be around $3/million Btu FOB, including maintenance. Tellurian will retain about 40% of the assets.
Bechtel has a $15.2-billion engineering, procurement, and construction (EPC) contract for the export facility. Total and GE are also partners on the project.
The Driftwood LNG terminal will be constructed on a 1,000-acre plot of land near Lake Charles, Louisiana, just off the coast of the US Gulf of Mexico. It will consist of up to 20 trains of 1.38 mtpa each and 3 storage tanks each containing 235,000 m3 of LNG. Tellurian estimated construction costs of $15.2 billion for the Driftwood terminal and approximately $2.3 billion for the Driftwood pipeline without accounting for owners’ costs, financing costs, and contingencies. The company is also developing the Haynesville Global Access Pipeline and the Permian Global Access Pipeline, which it estimates will cost $5.1 billion combined.
Tellurian said in its earnings release that it has received air permits from the Louisiana Department of Environmental Quality authorizing the construction and operation of equipment associated with the Driftwood terminal, along with a coastal use permit from the Louisiana Department of Natural Resources. The company also said it expects to receive all regulatory approvals by 2019.
What Does China’s LNG Import Tax Mean for the US?
Industry analysts fear bad news for producers, as Chinese demand is expected to be a significant driver in new LNG production. China accounted for 15% of US LNG exports in 2017.
Cheniere and Vitol Sign Long-Term LNG Deal
The contract calls for Vitol to purchase 700,000 tonnes annually over a 15-year period, providing some optimism for companies hoping to secure similar long-term deals.
Private Equity Backs First Sub-Saharan Africa Regas Terminal
The construction of an LNG regasification terminal in Tema, Ghana, in addition to the first delivery of gas from the offshore Sankofa field in August, is decreasing the country’s reliance on liquid fuels and imports. About 80% of its power generation requirements will be met with gas.
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
12 September 2018
29 August 2018
05 September 2018
07 September 2018