Bechtel, the well-known engineering and construction giant, has secured a big contract to build the Woodside Louisiana LNG terminal on the Gulf Coast. 

The project, headed by Australia’s largest oil and gas company, Woodside Energy, is expected to change the liquefied natural gas (LNG) landscape in the region. 

The total cost of the five-train production and export facility, located near Lake Charles, Louisiana, in Calcasieu Parish, is estimated at $27 billion.

Reston, Virginia-based Bechtel initially began groundwork for the project in 2022. Early efforts included demolition, site preparation, and constructing key foundational elements. This early phase marked the beginning of what is now one of the largest LNG ventures in the world.

In October, Woodside Energy finalized a $1.2 billion acquisition of Tellurian, the parent company originally developing the terminal, previously known as Driftwood LNG. Bechtel continued its work following the acquisition and has now entered a revised lump sum turnkey engineering, procurement, and construction (EPC) agreement to develop the three-train foundation facility. The terminal’s projected capacity for this initial phase is set at 16.5 million tonnes per annum (MTPA).

The new contract includes phases one and two of the project, which together are expected to cost between $14.9 billion and $15.8 billion. According to Woodside, phase one will feature two LNG trains with a combined capacity of 11 MTPA, while phase two will add a single train capable of producing 5.5 MTPA. The cost for these phases is estimated at $900 to $960 per tonne.

Woodside CEO Meg O’Neill expressed confidence in Bechtel’s ability to execute the project, noting the commendable progress already achieved. “The Woodside Louisiana LNG project is fully permitted, front-end engineering design is complete, and site civil works are well advanced,” O’Neill stated.

The road to developing the Woodside Louisiana LNG terminal has not been without obstacles. Initial plans, dating back to 2017, anticipated construction beginning in 2018 and the facility becoming operational by 2022. 

However, market fluctuations, including a drop in demand, and the economic disruptions caused by the COVID-19 pandemic delayed progress. Tellurian struggled to secure equity investment partners during this period, pushing the project’s groundbreaking to 2022.

Last year, Tellurian sought and obtained a three-year construction permit extension from U.S. regulators, extending the timeline for the project. This extension means the terminal’s operational launch will likely occur no sooner than 2029. According to a Woodside spokesperson, the project retains full approval from the Federal Energy Regulatory Commission (FERC) until the second quarter of 2029. However, no specific completion date has been provided.

In addition to financial and logistical delays, the project has faced legal battles with environmental advocacy groups. Despite these challenges, Woodside remains committed to the project and has even announced plans to sell a 50% stake in the terminal to further its development. Industry analysts view this as a strategic move to share financial responsibilities and improve collaboration.

Once fully operational, the Woodside Louisiana LNG terminal is poised to be one of the largest LNG production facilities in the world. With five liquefaction trains, the terminal will have the capacity to produce up to 27.6 MTPA of methane gas. This scale of production is expected to greatly bolster the U.S.’s position as a global leader in LNG exports.

The successful development of the Woodside Louisiana LNG terminal could set a new benchmark for large-scale LNG projects. By making the most of Bechtel’s engineering expertise and Woodside’s financial backing, the project is slated to meet growing global demand for LNG.