Total signs new LNG purchase and equity agreement with Driftwood LNG (US)

12 Jul 2019

Total has signed definitive agreements with US LNG project developer Tellurian to acquire US$200m of Tellurian's stocks, to invest US$500m in Driftwood Holdings, Tellurian's affiliate that is developing the 27.6 Mt/year Driftwood LNG export project in Louisiana (United States), and to buy 1.5 Mt/year of LNG from Tellurian’s offtake volumes from the Driftwood LNG project, at a price based on Platts Japan Korea Marker (JKM), on top of the 1 Mt/year already contracted in the initial agreement in April 2019. As for the April 2019 deal, the agreements are subject to relevant regulatory approvals and to a final investment decision (FID) on the Driftwood LNG project, which is expected to be made by Tellurian later in 2019, with first LNG production expected in 2023 and full operations as of 2026.

The US$15bn project is expected to include 20 liquefaction units, each producing 1.38 Mt/year, along with three 235,000 m3 storage tanks and three berths for the accommodation of the LNG ships. Tellurian's partners in the project are Total (shareholder), GE Electric and Bechtel as construction contractors. The construction will happen in 4 phases, with a first phase of eight trains (total capacity of 11 Mt/year), two storage tanks and two berths, followed by three phases of 4 trains (5.5 Mt/year) each. The third storage tank and berth should be added in the third stage. The project will also include a 96-mile (around 154 km) feed gas pipeline delivering 4 bcf/d (around 113 mcm/d) of natural gas to the terminal.

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