Woodside Vitality Group Ltd. has signed a revised turnkey engineering, procurement and development (EPC) contract with Bechtel Corp. for a just lately acquired liquefied pure fuel (LNG) challenge on america Gulf Coast.
“In a brief time frame, now we have accomplished the acquisition, secured aggressive revised EPC pricing that covers all three trains, and opened the info room with sturdy curiosity from potential challenge companions”, Woodside chief govt Meg O’Neill stated in an organization assertion Thursday saying the brand new lump-sum settlement.
The Australian oil and fuel exploration and manufacturing firm took over Driftwood LNG, situated close to Lake Charles, Lousiana, when it acquired Tellurian Inc. for about $1.2 billion. Woodside has renamed the challenge Louisiana LNG.
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The under-construction challenge, which has but to succeed in a remaining funding choice, is deliberate to have a capability of 27.6 million metric tons every year (MMtpa). The challenge secured all permits.
“Bechtel has labored on website because the acquisition and can proceed work beneath a restricted discover to proceed (LNTP) executed beneath the revised EPC contract”, stated the assertion on Woodside’s web site. “The LNTP gives for continued website development and dedication to sure key supplies and providers required for the muse challenge”.
O’Neill stated, “The aggressive pricing and schedule certainty now we have now secured compounds this benefit within the present unsure market surroundings for competing tasks”.
“Whole Louisiana LNG expenditure from December to finish of the primary quarter of 2025 is forecast to be as much as $1.3 billion, which is included within the total estimated value for the muse improvement”, the corporate said.
“The estimated ahead value for the muse improvement is $900-960/tonne, unchanged from the vary on the time of acquisition”, it added.
In November 2017, Bechtel and Tellurian signed fixed-price, lump-sum turnkey agreements value a complete of $15.2 billion for the Driftwood EPC, in keeping with a Bechtel press launch March 21, 2018.
Woodside expects to make a remaining funding choice within the first quarter of subsequent 12 months.
In an organization assertion October 9, 2024, saying the completion of the Tellurian buy, O’Neill stated Woodside had acquired curiosity “from a number of events seeking to enter the chance as a strategic accomplice”.
Woodside paid the Tellurian acquisition, introduced July 22, 2024, with round $900 million in money, or $1 per frequent share, for the inventory portion. The enterprise worth of about $1.2 billion “consists of $50 million for Tellurian’s Collection C Convertible Most well-liked fairness shares, ~$65 million of web debt, ~$20 million web working capital adjustment, ~$50 million for administration and debt change of management prices and ~$135m of interim funding from signing to shut”, Woodside stated saying closure.
Tellurian additionally had upstream belongings however offered these simply earlier than the transaction with Woodside. The belongings within the Louisiana Haynesville and Bossier shale basins, in addition to gathering and treating methods which have an mixture capability of 100 million cubic ft a day, went to Aethon Vitality Administration LLC for $260 million.
The upstream properties are nonetheless anticipated to provide the LNG challenge beneath Woodside. Alongside their sale settlement, Aethon and Tellurian signed a heads of settlement to help the event of the liquefaction facility.
“The Heads of Settlement contemplates the events negotiating a 20-year offtake settlement which might be listed to Henry Hub plus a liquefaction payment, with applicable credit score help, to offer the idea for challenge financing of Driftwood LNG”, Tellurian stated in a press launch Could 29.
“Aethon will proceed to discover further alternatives to carry worth to Driftwood LNG following the [upstream sale] transaction”.
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