Bechtel has been awarded the contract to complete the Woodside Louisiana LNG terminal, a $27 billion liquefied natural gas production and export facility located near Lake Charles, Louisiana. The project is being developed by Woodside Energy, Australia’s largest oil and gas company. Bechtel initially broke ground on the project in 2022, focusing on demolition, site preparation, and foundational work.
The terminal, which will have five liquefaction trains, is expected to produce up to 27.6 million tonnes per annum of methane gas once fully operational. In October 2023, Woodside acquired Tellurian, the previous developer of the project, for $1.2 billion, taking over the responsibility for its completion. Bechtel signed a revised lump sum turnkey contract to build out the three-train, 16.5 million-tonne per annum foundation facility, covering phases one and two of the project.
Phase one includes two liquefaction trains with a capacity of 11 million tonnes per annum, and phase two includes one train with a capacity of 5.5 million tonnes per annum. These phases are estimated to cost between $14.9 billion and $15.8 billion. According to Woodside’s spokesperson, the project is fully permitted, with front-end engineering design complete and civil works well advanced. However, delays have plagued the project over the years.
Initially, construction was scheduled to begin in 2018, with operations expected by 2022. However, reduced demand and the COVID-19 pandemic hindered investment deals and delayed the project’s start. As a result, the developers requested a three-year construction permit extension, pushing the expected launch to at least 2029.
The project has also faced legal challenges, including lawsuits from environmental groups. Despite these hurdles, Woodside remains committed to the development and is now seeking to sell a 50% stake in the project. Once completed, Woodside Louisiana LNG will be one of the largest LNG facilities globally, contributing significantly to natural gas exports.
