SINGAPORE (Reuters) – Australia’s Woodside (OTC: ) Energy Group said on Thursday it had signed an engineering, procurement and construction (EPC) contract with U.S. engineering firm Bechtel to develop a liquefied natural gas (LNG) project in Louisiana.
The EPC contract will cover the development of the foundation for three production lines of the project, with a capacity of 16.5 million tons per year.
The oil and gas producer also said it intends to make a final investment decision (FID) by the first quarter of 2025.
“ In total (EPA:) Louisiana LNG expenditures from December through the end of the first quarter of 2025 are projected to be up to $1.3 billion, which is included in the total estimated costs for foundation development,” Woodside said in a statement.
The estimated cost to develop the project’s foundations is $900-$960 per tonne of LNG, unchanged from the range at the time of purchase.
Woodside fully owns the Louisiana LNG project after acquiring developer Tellurian (NYSE: ) Inc for $1.2 billion in October. It seeks to sell a 50% stake in the project.
The project has a total permitted capacity of 27.6 million tons per year.
