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Released November 14, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Future liquefied natural gas (LNG) producer Tellurian Incorporated (NASDAQ:TELL) (Houston, Texas), the company founded by former Cheniere Energy (NYSE:LNG) (Houston) Chief Executive Officer Charif Souki, has engaged Bechtel Group Incorporated (San Francisco, California) for the engineering, procurement and construction (EPC) of the company's planned Driftwood LNG terminal, which will be constructed near Lake Charles, Louisiana. The deal is worth $15.2 billion.
The facility will be constructed in four phases, with the first two 5.5 million-ton-per-year trains being constructed simultaneously. Tellurian formally filed with the Federal Energy Regulatory Commission (FERC) for permission to build and operate the terminal earlier this year, and expects a response in mid-2018, after which construction will begin. The subsequent three trains are expected to follow, with construction of Train 5 expected to be completed in 2027. Each train has an estimated total investment value of $5 billion. For more information, see Industrial Info's project reports on Driftwood Train 1, Train 2, Train 3, Train 4 and Train 5.
In the recently passed third quarter, Tellurian announced that it had agreed to purchase natural gas assets and undeveloped acreage in northern Louisiana from Rockcliff Energy Operating LLC (Houston), including approximately 4 million cubic feet per day of natural gas production and approximately 138 drilling locations, which enable Tellurian to produce and deliver natural gas for an estimated $2.25 per million British thermal units. Tellurian estimates its agreement with Bechtel will allow it to deliver LNG from Driftwood terminal for $550 per metric ton.
In a press release, Tellurian President and Chief Executive Officer Meg Gentle said, "The agreements with Bechtel guarantee performance and secure the EPC cost of Driftwood LNG at $550 per tonne, one of the lowest-cost liquefaction construction projects worldwide." Gentle noted that Bechtel has delivered 42 LNG trains on 17 projects throughout the world.
Also Tellurian's agenda is the construction of a $1 billion pipeline to transport gas to the terminal. The pipeline is planned to kick off construction in mid-2018 after receiving FERC approval and will transport up to 4 billion cubic feet per day of natural gas to the company's planned terminal. For more information, see Industrial Info's project reports on Phase 1, Phase 2 and Phase 3 of the pipeline project.
Tellurian reported a net loss of $22.9 million for the three months ended September 30. Industrial Info is tracking more than $360 billion in active LNG projects in North America, including more than $47 billion under construction. Among the plants on target to be commissioned soon is Dominion Energy Incorporated's (NYSE:D) Cove Point LNG production facility in Maryland. Construction on the plant, which will produce 5.25 million tons per year of LNG, began in 2014 and is expected to be completed before the end of the year. For more information, see Industrial Info's project report and October 31, 2017, article - Dominion Energy: Cove Point LNG Project 97% Complete, Ready by End of Year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The facility will be constructed in four phases, with the first two 5.5 million-ton-per-year trains being constructed simultaneously. Tellurian formally filed with the Federal Energy Regulatory Commission (FERC) for permission to build and operate the terminal earlier this year, and expects a response in mid-2018, after which construction will begin. The subsequent three trains are expected to follow, with construction of Train 5 expected to be completed in 2027. Each train has an estimated total investment value of $5 billion. For more information, see Industrial Info's project reports on Driftwood Train 1, Train 2, Train 3, Train 4 and Train 5.
In the recently passed third quarter, Tellurian announced that it had agreed to purchase natural gas assets and undeveloped acreage in northern Louisiana from Rockcliff Energy Operating LLC (Houston), including approximately 4 million cubic feet per day of natural gas production and approximately 138 drilling locations, which enable Tellurian to produce and deliver natural gas for an estimated $2.25 per million British thermal units. Tellurian estimates its agreement with Bechtel will allow it to deliver LNG from Driftwood terminal for $550 per metric ton.
In a press release, Tellurian President and Chief Executive Officer Meg Gentle said, "The agreements with Bechtel guarantee performance and secure the EPC cost of Driftwood LNG at $550 per tonne, one of the lowest-cost liquefaction construction projects worldwide." Gentle noted that Bechtel has delivered 42 LNG trains on 17 projects throughout the world.
Also Tellurian's agenda is the construction of a $1 billion pipeline to transport gas to the terminal. The pipeline is planned to kick off construction in mid-2018 after receiving FERC approval and will transport up to 4 billion cubic feet per day of natural gas to the company's planned terminal. For more information, see Industrial Info's project reports on Phase 1, Phase 2 and Phase 3 of the pipeline project.
Tellurian reported a net loss of $22.9 million for the three months ended September 30. Industrial Info is tracking more than $360 billion in active LNG projects in North America, including more than $47 billion under construction. Among the plants on target to be commissioned soon is Dominion Energy Incorporated's (NYSE:D) Cove Point LNG production facility in Maryland. Construction on the plant, which will produce 5.25 million tons per year of LNG, began in 2014 and is expected to be completed before the end of the year. For more information, see Industrial Info's project report and October 31, 2017, article - Dominion Energy: Cove Point LNG Project 97% Complete, Ready by End of Year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
