Vinson & Elkins advised Driftwood LNG LLC and Tellurian Inc. in connection with four fixed price, lump sum turnkey agreements between Tellurian and Bechtel Oil, Gas and Chemicals, Inc., totaling $15.2 billion, for the engineering, procurement and construction of Driftwood LNG, a liquefied natural gas export facility proposed near Lake Charles, Louisiana.
Bechtel, a global leader in engineering, procurement, and construction, announced it has signed four lump-sum turnkey agreements with Driftwood LNG LLC, a Tellurian company, to deliver one of the world’s lowest-cost liquefaction construction projects near Lake Charles, Louisiana.
Construction of the Driftwood LNG project is expected to begin in 2018 with the first liquefied natural gas (LNG) produced in 2022, subject to Tellurian making a Final Investment Decision and a permit from the U.S. Federal Energy Regulatory Commission.
The four agreements cover four phases of the construction process, as production plants are progressively brought online. At full capacity, the facility will produce up to 27.6 million tonnes per annum (mtpa) of LNG.
Bechtel has delivered 42 LNG trains on 17 projects in 10 countries. The milestone includes the delivery of three LNG trains to customers in Australia and the United States in 2017 alone, adding some 13.5 mtpa of LNG to the global energy market. Today, production on Bechtel-built facilities accounts for 30% of global LNG capacity.
Bechtel is one of the most respected global engineering, construction, and project management companies. Together with our customers, we deliver landmark projects that create long-term progress and economic growth. Since 1898, we’ve completed more than 25,000 extraordinary projects across 160 countries on all seven continents. We operate through four global businesses: Infrastructure; Nuclear, Security & Environmental; Oil, Gas & Chemicals; and Mining & Metals.
The V&E corporate team was led by partner Mark Brasher (Picture) and associate Megan Stephens Menniti, with assistance from partners Peter Mims and Doug Bland and associates Michael Zarcaro, Josh Rocha and Caroline McDonald. Also advising were partners Bill Wallander, Jim Markus and Joe Garcia and associate Daniela Gutierrez.
Involved fees earner: Mark Brasher – Vinson & Elkins LLP; Megan Stephens Menniti – Vinson & Elkins LLP; Douglas Bland – Vinson & Elkins LLP; Michael Zarcaro Jr. – Vinson & Elkins LLP; Peter Mims – Vinson & Elkins LLP; William Wallander – Vinson & Elkins LLP; James Markus – Vinson & Elkins LLP; Daniela Gutierrez – Vinson & Elkins LLP; Joe Garcia Jr. – Vinson & Elkins LLP;
Law Firms: Vinson & Elkins LLP;