Houston-based Tellurian Investments Inc. announced Nov. 28 that GE Oil & Gas made a $25 million preferred equity investment in the company, which has an implied Tellurian common stock value of $5.94 per share.
“This investment represents another step forward in the development of Driftwood LNG where we are working together with GE to design the lowest-cost liquefaction for the global market. GE Oil & Gas has provided technology for LNG facilities worldwide for over 25 years and is a pioneer in innovation and a leader in reliability. We look forward to a long and beneficial partnership with the GE team,” Tellurian President and CEO Meg Gentle was quoted as saying.
Driftwood LNG, owned by Tellurian, is in the engineering design and pre-filing phase of the project. The Federal Energy Regulatory Commission (FERC) approved Driftwood LNG’s pre-filing request on June 6 and in October announced that it would prepare an environmental impact statement on the proposed project.
Driftwood LNG intends to construct a planned LNG liquefaction and export facility in Calcasieu Parish, La., along the west side of the Calcasieu River, with a liquefaction capacity of about 26 million metric tons per year of natural gas.
Additionally, Driftwood LNG plans to construct 96 miles of pipeline in Calcasieu, Jefferson Davis, Acadia and Evangeline Parishes, which would connect the liquefaction and export facility to the existing interstate U.S. natural gas grid.
The proposed facilities would consist of the following components: five LNG plants, each comprising one gas pretreatment unit and four gas turbine-driven, integrated pre-cooled, single mixed refrigerant liquefaction units; three full-containment LNG storage tanks of about 250,000 cubic meters (cu. m) each; three berths and loading facilities for LNG ships ranging from 125,000 cu. m up to 216,000 cu. m cargo capacity; and three compressor stations, 15-meter stations, a 3.5-mile, 36-inch-diameter pipeline lateral, and three pipeline segments, consisting of about 74 miles of 48-inch-diameter pipeline, 11 miles of 42-inch-diameter pipeline and 11 miles of 36-inch-diameter pipeline.
Tellurian expects construction on Driftwood LNG to begin in 2018 and the project to become operational in 2022.
Bryan Sims can be reached at bsims@hartenergy.com and @bsimshart.
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