- Woodside’s Louisiana LNG Project Gains Momentum with Bechtel Contract.
- Revised EPC Agreement Paves the Way for Woodside’s 16.5 MTPA LNG Facility.
- Bechtel to Lead Construction of Woodside’s Scalable Louisiana LNG Terminal.
Woodside, an Australian energy giant, has recently inked a revised lump-sum turnkey engineering, procurement, and construction (EPC) contract with the U.S.-based firm Bechtel Energy, an engineering, procurement, construction, and project management company. It deals with the three-train, 16.5 mtpa foundation development of the Woodside Louisiana LNG terminal, reports Offshore Energy.
Scalable Development with Significant Capacity
The Woodside Louisiana LNG terminal also referred to as Driftwood LNG, is considered to be a high-quality and scalable development. The project features 11 mtpa in Phase 1. 5.5 mtpa in Phase 2 for an aggregate permitted capacity of 27.6 mtpa. The pilings for Trains 1 and 2 are now complete, and the cost estimate for the foundation project is still at $900-960 per tonne.
Strategic Milestones Since Acquisition
The LNG terminal was renamed two months ago after Woodside completed the acquisition of Tellurian. The project’s previous owner, in a $900 million deal announced in July. Since the acquisition, Woodside has moved swiftly to advance the project’s development.
Woodside CEO Meg O’Neill said: “We continue to move at pace. In a short period of time, we have completed the acquisition, secured competitive revised EPC pricing that covers all three trains, and opened the data room with strong interest from potential project partners.”
“Louisiana LNG is an advantaged project that is fully permitted and has Bechtel as the EPC contractor. The competitive pricing and schedule certainty we have now secured compounds this advantage in the current uncertain market environment for competing projects.”
Final Investment Decision
Woodside remains on track to be FID-ready by Q1 2025. The company estimates that total expenditure will be up to $1.3 billion between December 2024 and the end of Q1 2025. The competitive pricing and schedule certainty that the revised EPC contract delivers will position the Louisiana LNG project as a leading contender in the evolving LNG market.
Bechtel’s Larger LNG Portfolio
Apart from the Louisiana LNG project, Bechtel is engaged in other LNG projects in the United States. The company has been awarded the contract to construct Train 4 and associated infrastructure for NextDecade Corporation’s Rio Grande LNG export terminal at the Port of Brownsville, Texas.
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Source: Offshore Energy
