Tellurian Inc., the money-losing U.S. natural gas producer, is beginning construction of a Louisiana export complex before it has lined up financing for the $12 billion development. 

Tellurian issued a so-called limited notice to proceed on Monday directing Bechtel Group Inc. to begin initial construction on the liquefied gas export project. The company founded by gas entrepreneur Charif Souki plans to fund the initial work with the proceeds from shale wells in northern Louisiana. 

The announcement didn’t mention the status of any talks with banks. In early February, Souki telegraphed that the start of construction would be paid for via cash flow and that financing for the rest of the work would be arranged later.

Tellurian dropped as much as 8.9% on Monday, a day when the energy sector was the worst-performing group in the S&P 500 Index. The stock, a darling of retail investors, has soared 81% this year. 

Tellurian has signed up customers for roughly one-third of its planned LNG production capacity. The first phase of the development near Lake Charles, Louisiana, will expand U.S. LNG-export capacity by about 15%. 

“Beginning construction now allows Tellurian to deliver upon our robust schedule for first LNG in 2026 while we complete the project financing,” Chief Executive Officer Octávio Simões said in a statement.