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    Tellurian Attracts Bechtel, Starts Open Season (Update)

Summary

Bechtel's oil and gas business has made a $50mn equity investment in Tellurian, which has launched a further pipeline open season.

by: Mark Smedley

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Natural Gas & LNG News, Americas, Infrastructure, Liquefied Natural Gas (LNG), News By Country, United States

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Tellurian Attracts Bechtel, Starts Open Season (Update)

updates with new 2nd para 

US new LNG export terminals developer Tellurian said March 21 that Bechtel's oil and gas business has made a $50mn equity investment in Tellurian, with an implied price of $8.16/Tellurian share. 

A Tellurian spokesperson told NGW March 22 that Bechtel now has an approximate 3% equity share in the company, while Total owns about 20% and GE about 2%.

“Tellurian management and Bechtel have worked together for many years [Tellurian management used to run Cheniere Energy, which contracted Bechtel to build the Sabine Pass and Corpus Christi liquefaction facilities] and we look forward to continuing our success as equity partners,” said Bechtel group CEO Brendan Bechtel. Tellurian CEO Meg Gentle added: "We are fortunate to have such strong strategic partners including Bechtel, GE and Total and look forward to breaking ground at Driftwood LNG in 2019.”  Tellurian late 2017 awarded a $15.2bn EPC contract to Bechtel to build the Driftwood LNG terminal in Louisiana, subject to final investment decision; phases would come onstream in 2022 to 2025.

Tellurian also announced March 20 that its subsidiary Permian Global Access Pipeline (PGAP) is offering a non-binding open season to secure prospective shippers for a proposed 42-inch diameter interstate natural gas pipeline connecting the Permian Basin in Texas to southwest Louisiana. PGAP is estimated to cost some $3.7bn to construct and will have the capacity to transport 2bn ft3/d. Construction is projected to begin as early as 2021 and the pipeline is targeted to be in service as early as 2022.

A month ago it announced a similar non-binding open season for its proposed $1.4bn Haynesville Global Access Pipeline (HGAP) project that would connect from Texan shales to its Driftwood project in southwest Louisiana.

Tellurian is looking to attract offtakers from its eventual 24mn mt/yr Driftwood LNG project, by offering such customers an equity stake and guaranteed offtake volume of 1mn mt/yr LNG for the 'lifetime' of the plant, all for $1.5bn payable over a four-year period.

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