The US LNG project developer Tellurian has announced the upcoming sale of 800 acres (324 hectares) of land initially earmarked for its 27.6 Mt/year Driftwood LNG project near Lake Charles, Louisiana (United States) to an undisclosed institutional investor for US$1bn. The company will lease the land back for 40 years at a capitalization rate of 8.75% and including 3% annual rent escalators. This agreement is pending several conditions, including Tellurian securing financing commitments for the first phase of the project. Driftwood LNG has already suffered many setbacks, including the cancellation of two LNG supply agreements with Shell and Vitol in September 2022.
In late March 2023, Tellurian issued a notice to proceed to Bechtel to start building the first phase of the Driftwood LNG project; Bechtel will build two liquefaction trains with a combined capacity of 11 Mt/year under a US$15.5bn Engineering, Procurement and Construction (EPC) contract. First LNG is expected in 2026. In a second phase, three additional liquefaction trains with a combined capacity of 16.6 Mt/year could be built.
Interested in LNG Databases?
World LNG Database offers a complete set of data on LNG markets. The service provides detailed information on existing and planned liquefaction and regasification plants. It also includes LNG shipping around the world, LNG contracts, time series on regasification and liquefaction capacities, LNG flows and LNG prices for all players in the market.