$17.5 B LNG Project Awards Dredging Contract to U.S. Giant

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  • Great Lakes Dredge & Dock Corporation (GLDC) has been awarded the dredging contract for the Louisiana LNG project operated by Woodside Energy.
  • The contract includes the construction of a ship berthing basin, with potential expansion options for additional berths.
  • Dredged material will be reused for marshland restoration, boosting ecological resilience in Calcasieu Parish, Louisiana.

Houston-based Great Lakes Dredge & Dock Corporation (GLDC) has secured a major dredging assignment for the Louisiana LNG project—formerly known as Driftwood LNG—located in Calcasieu Parish, near Lake Charles, Louisiana. The LNG development is operated by Australia’s Woodside Energy, with ownership shared between Stonepeak (40%) and Louisiana LNG (HoldCo), which is managed by Woodside.

Scope of Work and Environmental Considerations

Awarded by Bechtel Energy, the project’s EPC contractor, the initial phase involves construction of a ship berthing basin for large LNG carriers along the Calcasieu River Ship Channel. GLDC has also noted that two optional expansions for additional berths are under consideration.

Importantly, dredged material will be repurposed and placed in Beneficial Use of Dredged Material (BUDM) areas. This approach supports marshland restoration, offering ecological benefits and enhanced storm surge protection.

Dredging work is expected to begin in early 2026, following Woodside’s final investment decision (FID) of $17.5 billion, considered the largest single foreign direct investment in Louisiana’s history.

Project Scale and LNG Market Engagement

The Louisiana LNG project has a permitted capacity of 27.6 million tonnes per annum (mtpa) across five trains. The foundation phase includes three trains with a combined capacity of 16.5 mtpa.

Recent developments

  • Woodside signed a gas supply deal with BP to feed the LNG plant.
  • Aramco has shown interest in taking an equity position and offtake stake.
  • A heads of agreement (HoA) was signed with Petronas for 1 mtpa of LNG over 15 years, starting in 2028.

Strengthening LNG and Energy Infrastructure

In addition to the Louisiana project, GLDC has secured other major dredging assignments:

  • Galveston Entrance Channel and Houston Ship Channel (Texas)
  • Mississippi River Hopper Dredge Contract No. 3 (Louisiana)
  • Charleston Entrance Channel (South Carolina)

Lasse Petterson, President and CEO of GLDC, emphasized:

“These projects enable Great Lakes to play a vital role in enhancing the resilience and sustainability of the nation’s environment, coastlines, and critical infrastructure… These initiatives are essential to advancing U.S. energy infrastructure… and aligning with national energy security priorities.”

These combined awards significantly expand GLDC’s 2025 dredging backlog, ensuring revenue visibility well into 2026.

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Source: Offshore Energy