SINGAPORE (Reuters) - Australia's Woodside (OTC:WOPEY) Energy Group said on Thursday it has signed an engineering, procurement and construction (EPC) contract with U.S. engineering firm Bechtel to develop the Louisiana liquefied natural gas (LNG) project.
The EPC contract will cover the foundation development for the project's three production trains, with a capacity of 16.5 million tons per annum.
The oil and gas producer also stated that it aims to make the final investment decision (FID) by the first quarter of 2025.
" Total (EPA:TTEF) Louisiana LNG expenditure from December to the end of the first quarter of 2025 is forecast to be up to $1.3 billion, which is included in the overall estimated cost for the foundation development," Woodside said in a statement.
The estimated cost for the project's foundation development is $900-$960 per ton of LNG, unchanged from the range at the time of its acquisition.
Woodside fully owns the Louisiana LNG project after its $1.2 billion acquisition of developer Tellurian (NYSE:TELL) Inc in October. It is seeking to sell a 50% stake in the project.
The project has a total permitted capacity of 27.6 million tons per annum.