Driftwood LNG first phase likely two plants with up to four trains each

Ahead of sanctioning full construction of Driftwood LNG, Executive Chairman Charif Souki is suggesting Tellurian will proceed with a two-plant first phase, each with up to four trains, S&P Global Platts reports.

Citing comments made during a podcast posted on the company’s website earlier this month, S&P notes two medium-term supply contracts signed earlier in the summer with commodity traders Gunvor and Vitol put Tellurian on a solid commercial path.

The developer has yet to sanction full construction of the up to 27.6 million million-tons-per-year facility.

As of its latest posted investor presentation May 27, Tellurian estimated a 16 million million tons per year first phase for the liquefaction facility. It said the same thing in a January presentation. During the podcast, Souki said “65% of the capacity of the first phase” had been sold to Gunvor and Vitol.

At a combined 6 million million tons per year for the two 10-year commercial deals, S&P Global Platts surmises, that would imply a first phase of 9.2 million million tons per year. That would suggest a two-plant first phase, each with up to four trains.

On the podcast, Souki also said Tellurian was continuing to work on securing more supply deals to cover the remaining capacity for the project’s first phase. It also is building its upstream drilling portfolio and arranging bank financing needed to begin full construction.

Tellurian is targeting to give Bechtel a notice to proceed with the full construction of the terminal by the end of the first quarter of next year. Souki said Tellurian expects to be able to announce the bank group that will finance the project by the end of 2021.

Listen to the podcast.