It will include three compressor stations at Gillis, Basile, and Mamou and up to 15 meter stations, 17 mainline valves, and six pig launchers and receiver facilities. The company expects Phase 1 to enter service in 2022, with all phases operational by 2025. Driftwood … Tellurian Cuts Pipelines to Reduce Phase 1 Costs at U.S. LNG Export Plant 8/14/2020 (Reuters) — U.S. liquefied natural gas (LNG) developer Tellurian Inc reduced the cost of the first phase of its proposed Driftwood LNG export project in Louisiana by around 30% to roughly $16.8 billion by deferring some planned pipelines. Driftwood LNG signed four lump-sum turnkey agreements worth $15.2bn with Bechtel for the engineering, procurement and construction (EPC) of four phases of the project in November 2017. Tellurian, a natural gas company based in Texas, will own and operate the LNG processing and export facility through its wholly-owned subsidiary Driftwood Holdings. Tellurian appointed Goldman Sachs and SG Americas Securities (Societe Generale) as financial advisors for Driftwood Holdings and Driftwood LNG export facility in January 2018. The facility can export up to four billion cubic feet per day (bcf/d) of natural gas at full capacity. Driftwood LNG LLC, owned by Tellurian Inc., is developing a liquefied natural gas (LNG) production and export terminal on the west bank of the Calcasieu River, south of Lake Charles, Louisiana. The regulator approved permit for the start of site preparation works in December 2019. Tellurian said that to date about 30 percent of the engineering for Phase 1 of the Driftwood LNG terminal has been completed by US engineering, procurement and construction company Bechtel. Image courtesy of Tellurian. On November 10, 2017, Driftwood LNG entered into a lump sum turnkey EPC agreement with Bechtel for the construction of Phase 1 of the Driftwood LNG liquefaction facility (the “Phase 1 EPC agreement”). Bechtel was awarded four turnkey contracts worth $15.2bn covering the EPC of the Driftwood LNG export facility in four phases, in November 2017. Driftwood LNG At-A-Glance. The FID for the second phase of the project is expected about 12 to 18 months after construction starts on phase 1. The 154.5km of associated pipeline segment will contain a single 119km-long 48in pipeline, a 17.7km-long 42in pipeline, a 17.7km-long 36in pipeline, and a 5.6km-long 30in lateral pipeline. The four agreements cover four phases of the construction process, as production plants are progressively brought online. Change Order CO-004, dated as of January 21, 2020, to the Lump Sum Turnkey Agreement for the Engineering, Procurement and Construction of the Driftwood LNG Phase 3 … The project is expected to produce first LNG in 2023, with full operations expected in 2026. The construction of the project is expected to begin in summer 2021 and the first production of LNG is anticipated in 2023. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. Bechtel was also the FEED contractor for the project. With a capacity of approximately 3.5bcf/d of flowing gas, the pipeline will interconnect the Driftwood LNG terminal to the natural gas market in the US. Credit: Iam_Anupong/Shutterstock. Total Gas & Power will purchase an additional of 1.5mtpa of LNG from Tellurian’s LNG off-take capacity at the export facility. Planned to be built in four phases, the project will interconnect with up to 14 interstate pipelines, receive up to four billion cubic feet a day (bcf/d) of feed gas, and produce up to 27.6Mtpa of LNG for export. definition. According to that agreement, Driftwood LNG will be constructed in four phases, with each phase beginning operations on a staggered basis. Driftwood LNG submitted draft Resource Reports to FERC. At any time after “Substantial Completion” of “Project 1,” each as defined in and pursuant to the LSTK EPC agreement for the Driftwood LNG Phase 1 Liquefaction Facility, dated as of November 10, 2017, or at any time after March 21, 2028, we have the right to cause all of the Preferred Stock to be converted into shares of our common stock on a one-for-one basis. The Driftwood facility will comprise five LNG plants with each plant housing one gas pre-treatment unit for condensate and water removal, and four liquefaction units. Change Order CO-004, executed on October 21, 2019, to the Lump Sum Turnkey Agreement for the Engineering, Procurement and Construction of the Driftwood LNG Phase 1 Liquefaction... (Filed With SEC on February 24, 2020) The pipeline sections will have three compressor stations (CS 01 Gillis, CS 02 Basile, and CS 03 Mamou), 13 interconnects, and 15 new metre stations in Calcasieu, Jefferson Davis, Acadia, and Evangeline Parishes, Louisiana for the delivery of natural gas to the facility. The second and third phases will add four liquefaction units and one loading berth each. Final investment decision and the start of construction on the project are expected in the second  half of 2019, while operations are expected to be commenced in 2023. In May 2019, the US Department of Energy (DOE) Office of Fossil Energy granted long-term authorisation to Driftwood to export up to 3.88bcf/d of natural gas as LNG to non-free trade agreement (non-FTA) countries. Driftwood described the $550/tonne EPC cost as one of the lowest worldwide. Tellurian partnered with Vitol to supply 1.5mtpa of LNG from the former’s LNG off-take volumes at the LNG export terminal in December 2018. Phase 1 will deliver 11m t/y of LNG from eight liquefaction units, storage tanks 1 and 2, loading berth 1 and related utilities. Graphic: Business Wire. The terminal will have three marine loading berths for the commercial supply of LNG from the facility. The first phase of construction will involve eight liquefaction units, two storage tanks, and a loading berth. The fourth and the final phase will involve the construction of four more liquefaction units and other associated facilities. If you continue using our website, we'll assume that you are happy to receive all cookies on this website. The project site will be developed over 1,000acres of leased site, which has insulation from surge, winds and local populations and receives support from local communities. Driftwood LNG est un projet GNL intégré qui comprend la construction de gazoducs à partir de zones de production de gaz au Texas et une usine de liquéfaction au concept modulaire à faible coût d’une capacité de 16,6 Mtpa (phase 1) qui peut être augmentée jusqu’à 27,6 Mtpa. Driftwood LNG is an integrated LNG project that includes building gas pipelines from gas producing areas in Texas and a low cost modular concept liquefaction plant with a capacity of 16.6 Mtpa (Phase 1) and a possibility of increase to 27.6 Mtpa. Driftwood LNG construction. If you are looking for stocks with good return, Tellurian Inc stock can be a bad, high-risk 1-year investment option. The publication of these environmental studies provides FERC and the public with information about any potential impacts of the proposed project. Get the latest energy news delivered to your inbox. The FID for the second phase of the project is expected about 12 to 18 months after construction starts on phase 1. https://www.bizjournals.com/.../tellurian-cuts-costs-on-driftwood-lng.html Once complete, the terminal will be able to export up to twenty-seven million, six hundred thousand tonnes of LNG per year to customers worldwide. The berth measures more than 45ft long with access to high seas. The second phase will add an additional four units with up to 5.5mtpa of LNG capacity, one loading berth and associated utilities. Phase 1 EPC Contract means that certain Lump Sum Turnkey Agreement for the Engineering, Procurement and Construction of Driftwood LNG Phase 1 Liquefaction Facility, between Driftwood LNG and Bechtel Oil, Gas and Chemicals, Inc., dated November 10, 2017. Phase 4: One LNG plant. Phase 3: One LNG plant, a third storage tank and a third loading berth. Feed gas pipeline for Driftwood LNG. Feed gas pipeline for Driftwood LNG. The first phase of Driftwood is slated for operation in 2025, and will produce about 16.5 million tonnes per annum of LNG, equivalent to about 2.2 billion cubic feet per day of natural gas. In 2020, global LNG demand hit a record high of 360 million tonnes. The LNG export project will feature three marine loading berths and three full containment LNG storage tanks with 235,000m3 capacity. The four lump-sum turnkey agreements are for each of the four phases of the construction of Driftwood LNG facility. Tellurian is deferring all but one pipelines associated with the first phase of its proposed Driftwood liquefied natural gas (LNG) export project, the LNG producer said in an investor presentation. Construction of the Driftwood LNG facility is expected to be commenced in 2019. Tellurian has been in talks with several companies to select equity partners for the project. This is the final piece of the Driftwood facility, which will … (2) For phase one: ~$9.8 billion of project finance debt amortized over 20-year period. Phase 3: One LNG plant, a third storage tank and a third loading berth. Located near the junction of the Calcasieu Ship Channel and the Intracoastal Waterway (ICW), each marine berth will be capable of accommodating 216,000m3 LNG carriers. The Reuters story suggests that the first phase of Driftwood is slated for operation in 2025, and will produce about 16.5 million tonnes per annum of LNG, equivalent … The project is expected to produce first LNG in 2023, with full operations expected in 2026. The project will be developed by Driftwood LNG, a subsidiary of Tellurian and will have the annual capacity to export up to 27.6mtpa LNG to customers globally. The Driftwood LNG export project is a proposed liquefied natural gas (LNG) production and export terminal on the west bank of the Calcasieu River near Lake Charles, Louisiana on the Gulf Coast of the US. Tellurian Inc confirmed on Wednesday it still plans to make a final investment decision to build its proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana in 2019: Once brought on stream, Driftwood LNG is expected to become one of the lowest-cost LNG production projects in the world. The phase one will include the construction of eight units with up to 11mtpa of LNG capacity, two storage tanks, one loading berth and associated utilities. Driftwood LNG is an integrated LNG project that includes building gas pipelines from gas producing areas in Texas and a low cost modular concept liquefaction plant with a capacity of 16.6 Mtpa (Phase 1) and a possibility of increase to 27.6 Mtpa. Driftwood LNG project, planned to be developed on the west bank of Calcasieu River in Louisiana, US, involves the construction of a 27.6 million ton per annum (Mtpa) LNG terminal and 154.5km of feed gas pipeline. Timelines. Phase 4: One LNG plant. It has access to pipeline infrastructure, power and water sources. The first phase of construction will involve eight liquefaction units, two storage tanks, and a loading berth. The LNG facility will use 20 GE refrigeration compressors and three 235,000m³ storage tanks. Phase 1 EPC Contract. Chart Energy and Chemicals will provide the liquefaction technology for the LNG facility. Presently, the Drfitwood LNG website careers page only shows 1 available position. Potential LNG buyers for the project have the opportunity to become equity investors of Driftwood Holdings and buy LNG from the Louisiana facility at an operating cost, which is estimated to be as low as $3 per million metric British thermal unit (MmBtu). Driftwood expects to deliver LNG FOB at < $3.50/mmBtu Integrated operations deliver lower costs Notes: (1) Includes operating expenses for Driftwood LNG plant and Driftwood pipeline and G&A. The project will generate approximately 6,500 construction jobs and 400 jobs during operational phase. This is the final piece of the Driftwood facility, which will … Driftwood expects to deliver LNG FOB at < $3.50/mmBtu Integrated operations deliver lower costs Notes: (1) Includes operating expenses for Driftwood LNG plant and Driftwood pipeline and G&A. In September 2019, Tellurian signed an agreement with India’s Petronet LNG that intends to purchase up to 5mtpa of LNG from Driftwood through equity investment up to $2.5bn. A 230kV/34.5kV switchyard will be constructed within the project site by Entergy Louisiana. Tellurian initiated a process to raise $24bn for Driftwood Holdings, with Goldman Sachs and SG Americas Securities serving as financial advisors, in January 2018. Chart Industries will provide the liquefaction technology, while GE will supply the refrigeration compressors for the project. Credit: Shinobi/Shutterstock. (Driftwood LNG) filed an application for authorization under section 3 of the Natural Gas Act (NGA)1 and Part 153 of the Commission’s regulations2 to site, construct, and operate facilities for the liquefaction and export of natural gas (Driftwood LNG Project) at a proposed liquefied natural gas (LNG) terminal on 790 acres of land near the city of Carlyss in Calcasieu Parish, Louisiana. Driftwood LNG terminal in Louisiana will export up to 27.6Mtpa of LNG. Driftwood Pipeline LLC (“DWPL”), a subsidiary of Tellurian Inc., hereby announces a Binding Open Season for the Driftwood Pipeline (“Project” or “Pipeline”), which has been proposed in conjunction with the Driftwood LNG Facility (“DWLNG Facility”). The fourth and the final phase will involve the construction of four more liquefaction units and other associated facilities. We have recently upgraded our technology platform. Once complete, the terminal will be able to export up to twenty-seven million, six hundred thousand tonnes of LNG per year to customers worldwide. Tellurian et Total signent un contrat de vente et d'achat de GNL d'un volume supplémentaire de 1,5 Mtpa de Driftwood GNL fournis par Tellurian Marketing LNG. One billion cubic feet of gas is enough to supply about five million homes for a day. Image courtesy of marc falardeau. Six pig launchers and receiver facilities, and 17 mainline valves will also be deployed along the pipeline. Driftwood described the $550/tonne EPC cost as one of the lowest worldwide. The phase three of the project will add a capacity of up to 5.5mtpa of LNG from four units, one storage tank, one loading berth and associated utilities. means that certain Lump Sum Turnkey Agreement for the Engineering, Procurement and Construction of Driftwood LNG Phase 1 Liquefaction Facility, between Driftwood LNG and Bechtel Oil, Gas and Chemicals, Inc., dated November 10, 2017. The LNG export facility will utilise Chart Industries’ proprietary Integrated Pre-cooled Single Mixed Refrigerant (IPSMR®) liquefaction process technology, which offers improved process efficiency compared to other mixed refrigerant processes. This report will impact all industries helping: Download our 2019 Technology, Media and Telecoms Predictions Report. In May 2019, the U.S. Department of Energy authorized Tellurian to export up to 3.88 billion cubic feet (bcf ) of LNG  a day to  countries that do not have free trade agreement (FTA) with the US. Define Phase 1 EPC Contract. In this report, we look at the 30 big tech themes for 2019, identifying winners and losers for each theme. Houston — Tellurian will build only one of four proposed pipelines during the first phase of its Driftwood LNG export project if it decides to sanction the US facility, according to an investor presentation the company issued Aug. 12. We use them to give you the best experience. We use cookies to ensure that we give you the best experience on our website. The LNG facility will receive power supply through two 230kV transmission lines connecting the existing Big Lake and Mud Lake substations. The project will include the construction of liquefaction export facility along with natural gas production, gathering, processing, and transportation facilities, and an associated 154.5km feed-gas pipeline. The Driftwood export facility is proposed for the west bank of the Calcasieu River, south of Lake Charles, and with output of 26 million tonnes per annum. The Driftwood LNG export project includes the construction of 154.5km of pipeline. The facility will also comprise 20 GE refrigeration compressors driven by GE aero derivative natural gas turbines, three marine loading berths, and three full containment LNG storage tanks of 235,000m3 capacity each. “Driftwood EPC Contract (Phase 1)” means Lump Sum Turnkey Agreement for the Engineering, Procurement and Construction of the Driftwood LNG Phase 1 Liquefaction Facility, dated as of November 10, 2017, by and between Driftwood LNG LLC and Bechtel Oil, Gas and Chemicals, Inc. Tellurian entered a heads of agreement (HoA) with Total in April 2018, for $500m equity investment and 2.5Mtpa of LNG off-take from Driftwood, in April 2018. Driftwood LNG LLC is developing a liquefied natural gas (LNG) production and export terminal on the west bank of the Calcasieu River, south of Lake Charles, Louisiana. Total Gas & Power will purchase 1mtpa of LNG from the Driftwood LNG export facility, while Total will invest $500m in Driftwood Holdings. Final versions of the reports are submitted with the official FERC Application at the end of the pre-filing phase to initiate the formal FERC review process. 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(2) For phase one: ~$9.8 billion of project finance debt amortized over 20-year period. Image courtesy of Total. The fourth and final phase of development will also add another four units and associated facilities with up to 5.5mtpa of LNG capacity. SG Americas Securities was selected to provide financial strategy and planning for the Driftwood LNG project in March 2017. The LNG export facility will be developed in four phases with a total of 20 liquefaction units of 1.38mtpa LNG production capacity each. Tellurian signed definitive sales and purchase agreements worth $13.8bn with Total subsidiaries in July 2019. The front-end engineering and design (FEED) study for the project was completed in the first half of 2017, while the engineering, procurement, and construction (EPC) agreements were concluded in November 2017. The company expects Phase 1 to enter service in 2022, with all phases operational by 2025. The Driftwood LNG production and export terminal will be developed on the west bank of the Calcasieu River, near Lake Charles, Louisiana on the Gulf Coast of the US. The pipeline system will include 119km of 48in diameter single pipeline, 17.7km of 42in diameter single pipeline, 17.7km of 36in diameter single pipeline, and 5.6km of 30in diameter pipeline lateral. The U.S. Federal Energy Regulatory Commission (FERC) issued the final environmental impact statement (EIS) for the LNG project in January2019 and granted authorization to build and operate the LNG facility along with the pipeline in April 2019. The first phase will now include liquefaction units capable of producing 14.4-16.6 million tonnes per annum (MTPA) of LNG and the Driftwood pipeline to deliver up … If you continue to use this site we will assume that you are happy with it. Equinor awards $153m service contracts for Norwegian supply bases, Enbridge, Enterprise to develop offshore crude oil export terminal in Gulf of Mexico, TDWP and Shell complete retrofit project of Deer Park Rail Terminal, Bender launches new subsea cable LIM Insulation Monitoring device. The proposed 154.5km feed gas pipeline for Driftwood LNG facility will stretch from the interconnection point with the interstate pipeline system, located 7.2km south of Ville Platte. With 13 interconnections, the pipeline will handle up to 35bcf of flowing gas a day. Tellurian further signed a memorandum of understanding (MoU) with Petronet LNG for equity investment in the project, in February 2019. Tellurian Cuts Driftwood LNG Costs, Defers Haynesville Supply Pipeline. In total, Driftwood will produce 27.6 mtpa of LNG or about 4 billion cubic feet per day (bcfd) of natural gas. Each of the 20 liquefaction units at Driftwood will produce up to 1.38Mtpa of LNG, using Integrated Pre-cooled Single Mixed Refrigerant (IPSMR®) liquefaction technology. The US Federal Energy Regulatory Commission (FERC) issued the final environmental impact statement (FEIS) for the project in January 2019, followed by the final authorisation order for the development and operation of the project in April 2019.