GLNG: Tellurian starts construction on Driftwood LNG

US-based Tellurian announced on March 28 that it had kicked off construction on its Driftwood LNG terminal on Louisiana’s Gulf Coast.
The company has issued engineering, procurement and construction (EPC) contractor Bechtel with a limited notice to proceed. Bechtel’s first activities will include demolition, civil site preparation and construction of critical foundations. Baker Hughes will manufacture two of the natural gas turbines required for Driftwood’s first phase.
Tellurian said Phase One would include two LNG plants with a capacity of up to 11mn tonnes per year. When fully built, Driftwood is expected to have a capacity of 27.6mn tpy.
Driftwood has received all the major permits required for construction and operation, Tellurian said, and has progressed detailed engineering to around 30% complete.
The company had previously said it would begin construction of the project in April – noting that this could begin before financing for the project had been finalised. This has now been confirmed to be the case. A slightly earlier than expected start to construction comes as Europe seeks to urgently reduce its dependence on Russian gas, with US LNG considered a significant alternative.
“Energy security is a leading concern in many countries today and the United States must do our part to supply LNG to the global market as quickly as possible,” stated Tellurian’s president and CEO, Octávio Simões. “Beginning construction now allows Tellurian to deliver upon our robust schedule for first LNG in 2026 while we complete the project financing. We are well advanced in Driftwood LNG’s detailed engineering and major equipment orders, and we have completed all the owners’ projects required for us to turn the site over to Bechtel.”