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Driftwood LNG Project, Louisiana

  • Project Type

    LNG production and export facility

  • Location

    Louisiana, US

  • Start of Construction

    2019

  • Start of Operations

    2023

  • Capacity

    27.6Mtpa

  • Owner and Operator

    Tellurian

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.

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.

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.

Tellurian expects to receive the final regulatory approval for the LNG project from U.S. Federal Energy Regulatory Commission (FERC) in the first half of 2019.

Final investment decision and the start of construction on the project too are expected in 2019, while the terminal is scheduled to commence operations in 2023.

Driftwood LNG project details

Driftwood LNG export facility will process the gas feed from the existing interstate pipeline system of Columbia Gulf Transmission.

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.

Once brought on stream, Driftwood LNG will become one of the lowest-cost LNG production projects in the world.

Details of Driftwood LNG liquefaction and loading facility

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.

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 LNG facility will use 20 GE refrigeration compressors and three 235,000m³ storage tanks.

The LNG terminal will have three marine loading berths for the commercial supply of LNG from the facility.

Driftwood LNG construction

The first phase of construction will involve eight liquefaction units, two storage tanks and a loading berth.

The second and third phases will add four liquefaction units and one loading berth each.

The fourth and the final phase will involve the construction of four more liquefaction units and other associated facilities.

Feed gas pipeline for Driftwood LNG

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.

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.

It will include three compressor stations at Gillis, Basile and Mamou and up to 15 meter stations.

With 13 interconnects, the pipeline will handle up to 35bcf of flowing gas a day.

Driftwood LNG financing

Tellurian initiated a process to raise $24bn for Driftwood Holdings, with Goldman Sachs and SG Americas Securities serving as financial advisors, in January 2018.

As of June 2018, Tellurian was in talks with 20 companies to select equity partners for the project.

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 British thermal unit (MMBtu).

 Contractors involved with Driftwood LNG project

Bechtel was awarded four turnkey contracts worth $15.2bn covering the EPC of the Driftwood LNG export facility in four phases, in November 2017. Bechtel was also the FEED contractor for the project.

Chart Energy and Chemicals will provide the liquefaction technology for the LNG facility. GE Oil and Gas will supply the turbines and compressors for the facility.

SG Americas Securities was selected to provide financial strategy and planning for the Driftwood LNG project in March 2017.