Driftwood LNG Terminal

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.

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Driftwood LNG Terminal is a proposed LNG terminal in Louisiana, United States.

Location

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Project Details

• Parent: Total SA, Tellurian Investments, Magellan Petroleum
• Location: Calcasieu Parish, , Louisiana, United States
• Coordinates: 30.23, -93.36 (approximate)
• Capacity: 27.6 mtpa, 3.96 bcfd
• Status: Proposed
• Type: Export
• Trains: 5
• Start Year: projected to initiate in 2023, with full service in 2026

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Driftwood LNG Terminal is a proposed LNG terminal in Louisiana, United States. In April of 2017, Tellurian has completed the pre-filing and formal application process with the Federal Energy Regulatory Commission (FERC).

The project includes five production trains in the LNG export terminal, and a pipeline.

In April of 2019, French company, Total SA, and Tellurian Inc. signed deals supporting the development of Driftwood LNG Terminal. Under a non-binding heads of agreement (HOA), Total will invest in Driftwood Holdings and will offtake 2.5 million tonnes per annum (mtpa) of LNG. The HOA is for Total to make a $500 million equity investment and to buy one mtpa of LNG from Driftwood. In addition, the HOA specifies that both companies will enter into a binding sales and purchase agreement for a further 1.5 mtpa of LNG from Tellurian Marketing’s LNG offtake volumes from the proposed Driftwood terminal, and for the purchase of LNG on a free-on-board basis for a minimum of 15 years, at a price based on Platts Japan Korea Marker. Both companies also signed a common stock purchase agreement in which Total will buy nearly 20 million shares of Tellurian common stock for $200 million. Including Total’s original $207 million investment in Tellurian in 2017, Total’s aggregate investment in the Tellurian portfolio will amount to $907 million. The agreements are subject to relevant regulatory approvals and to a final investment decision on the Driftwood LNG project, which is expected to be made by Tellurian in the first half of 2019. It will also be the French major’s first deal priced off JKM, which is a fast developing Asian benchmark for spot cargoes. Tellurian plans to make a final investment decision on its Driftwood LNG export project in the first half of 2019. The project is expected to produce first LNG in 2023, with full operations expected in 2026. In total, Driftwood will produce 27.6 mtpa of LNG or about 4 billion cubic feet per day (bcfd) of natural gas. The FID for the second phase of the project is expected about 12 to 18 months after construction starts on phase 1.