August 30, 2023 [LNG Prime]- US LNG terminal developer Tellurian is moving forward with the initial construction work at its Driftwood LNG terminal in Louisiana, while it still works on securing financing for the project worth about $14.5 billion.
Tellurian issued a limited notice to proceed to compatriot engineering and construction giant Bechtel in March last year.
Under the first phase, Tellurian aims to build two LNG plants near Lake Charles with an export capacity of up to 11 mtpa.
The firm released a drone footage (below) showing the activities at the Driftwood LNG site in August.
According to Tellurian, Bechtel has completed piling work for the first plant and also concrete pouring for all plant one compressor foundations.
Bechtel also completed more than 50 percent of pilling work for the LNG storage tanks, it said.
Tellurian’s co-founder and executive chairman, Charif Souki, recently said that the company’s focus lately has been on two areas.
The first is Driftwood LNG, where the company continues to drive piles with Bechtel and continues to build the foundation, he said.
“And that effort will continue with the second notice to proceed for the balance of this year and half of next year and we’ll prepare the site for the final notice to proceed,” Souki said.
Moreover, Souki said that the “next step forward on Driftwood is to start securing long-lead items, mainly the turbines and the compressors.”
Souki said that Tellurian has spent up to date $16 million dollars securing the turbine purchases and will continue to work with Baker Hughes for these deliveries.
“So look for more news on that,” he said.
“When we finalize this, we will have spent $1.5 billion on Driftwood to prepare it for the final notice to proceed,” he said.
Tellurian’s latest corporate presentation posted on its website shows the Driftwood capital structure includes $7 billion bank debt, $2 billion lease/mezzanine financing, $1.8 billion partner equity, $1.5 billion Tellurian equity, and also $2.5 billion contingent equity.
If the six months of commissioning LNG cargoes cover the contingent equity, the contingent equity will not be funded, according to Tellurian.
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