BY JOSHUA MANN – REPORTER / HOUSTON BUSINESS JOURNAL
Houston-based Tellurian Inc. (Nasdaq: TELL) has awarded Bechtel Oil, Gas and Chemicals Inc. — the Houston-based subsidiary of California-based Bechtel Corp. — a collection of four engineering, procurement and construction agreements for its flagship liquefied natural gas terminal near Lake Charles, Louisiana.
The agreements for the Driftwood LNG facility come to a total of $15.24 billion across four phases of construction, according to a filing with the U.S. Securities and Exchange Commission. The phases are to be completed along four deadlines. Tellurian has not yet filed the specific dates of those deadlines, though the Driftwood facility is supposed to start producing LNG from the first phase some time in 2022, with full production from all four phases in 2025, according to a company spokeswoman.
In total, Driftwood will have capacity to produce up to 27.6 million tons per year of LNG, which means the facility will cost about $554 per ton of capacity. That makes it one of the lowest-cost LNG facility construction projects in the world, Tellurian's president and CEO, Meg Gentle, said in a press release.