Tellurian Inc. (AMEX: TELL) has clarified that it has issued Bechtel Energy Inc. (Bechtel) a limited notice to carry out under its executed Engineering, Procurement, and Construction (EPC) contract of the construction of phase one of the Driftwood LNG terminal, a liquefied natural gas (LNG) export facility near Lake Charles, Louisiana.

Driftwood LNG is a liquefaction export facility with a capacity of 27.6 million tonnes per annum. The first phase will consist of two LNG facilities with an annual export capacity of up to 11 million tonnes (mtpa). Driftwood has secured all of the primary permissions needed for construction and operation.

Furthermore, it has nearly completed detailed engineering, and also completed the purchase and lease of about 1,200 acres of land, providing an optimal construction site with enough laydown and Deepwater access for shipping. The company has disclosed that the demolition, civil site preparation, and the construction of essential foundations are among Bechtel's first tasks, while Baker Hughes will continue to manufacture two of the natural gas turbines needed for phase one of the project.

Additionally, Tellurian is starting construction immediately so that it can meet its aggressive timeline for the first LNG in 2026 as it finishes the project funding. Driftwood LNG's detailed engineering and key equipment orders are well underway, and it has finished all of the owners' projects needed for it to hand over the site to Bechtel.

Bechtel's COO, Craig Albert, stated that on the Driftwood LNG project, the company is very proud and thrilled to continue its long cooperation with Tellurian. The world's need for this steady source of energy from the United States is as clear as ever. And it is looking forward to focusing on the field and getting started on construction.