U.S. LNG project developer Tellurian has stated that the construction of its Driftwood LNG export facility will begin in April 2022.

The total cost of the project, designed to produce 27.6 million tons per annum of LNG, is near $30 billion while $12 billion are needed just to complete Phase 1 of the Driftwood LNG facility, which will be located on the Calcasieu River, south of Lake Charles, Louisiana, and it will only take several years to pay this cost back.

Driftwood already has a $15.5 billion turnkey engineering, procurement, and construction contract with Bechtel in place that guarantees cost, performance, and schedule. The dal was agreed back in 2017.

The first phase will consist of two plants, each with up to four liquefaction trains. According to Tellurian, this will create about 400 direct jobs and 6,500 construction jobs.

Tellurian has already invested around $150 million and purchased some 1,000 acres of real estate ensuring a construction site for the project.

Each Driftwood LNG plant is expected to have up to four liquefication trains, for a total design capacity of as much as 27.6M mt/year. The facility will have an annual capacity of 550 bcf once Phase 1 is complete. The first delivery could take place in 2026.

Charif Souki, executive chairman of Tellurian and frequently referred to as 'the Godfather of LNG', said in a YouTube video the company posted on its website that it signed 10-year deals with Shell, Guvnor, and Vitol for 9 million tons of gas and that this justified beginning work on the first phase of the scheme. He confirmed that construction would start in April 'as promised.'

"We have access to enough capital to make sure we can do the first year of construction," Souki said. He added that Tellurian was attempting to arrange financing with 45 different lenders, which was "like herding cats".

"It is critical to get it right for the value of the shareholder, so we're not going to rush through that process," Souki said in his latest public message. "We're very comfortable starting the construction program without being completely sure that the financing will be put in place."

"We now have a number of banks that are willing to consider a project like this. We feel very confident and comfortable that this will be done," he concluded.