Venture Global LNG has taken a final investment decision (FID) and successfully closed its project financing for the initial phase of the Plaquemines LNG facility and the associated Gator Express pipeline
The US$13.2Bn transaction represents the largest project financing in the world closed to date in 2022, according to the firm.
The proceeds of the debt and equity financing fully fund the balance of construction and commissioning of the initial phase of work to upsize the project’s output by 13.33M tonnes per annum (mta).
The Plaquemines LNG project is the first LNG project located in the United States to reach financial close since Venture Global’s Calcasieu Pass facility in August 2019.
“Plaquemines will build on the success of Calcasieu Pass, which broke global records for speed and execution. The project has attracted robust financial and commercial support which has enabled us to formally sanction this project at a critical moment for energy markets. Speed matters more than ever and Venture Global is uniquely positioned to quickly bring US LNG to the market to support global energy security and environmental progress,” Venture Global LNG chief executive Mike Sabel said.
“The Venture Global team is proud to announce FID on our second project, Plaquemines LNG, just months after exports began at Calcasieu Pass. I want to thank our team for their tireless efforts to support this remarkable achievement.”
Plaquemines LNG has received all necessary permits, including FERC authorisation and non-FTA export authorisation from the US Department of Energy, according to the company.
Venture Global LNG has executed 20-year sales and purchase agreements (SPAs) for 80% of the full 20 mta project. Plaquemines LNG phase one customers include PGNiG, Sinopec, CNOOC, Shell and EDF. Phase two customers announced to date include ExxonMobil, Petronas and New Fortress Energy. The company said marketing is actively underway for its third facility, CP2, and that two SPAs with ExxonMobil and New Fortress Energy have already been executed for the project.
Venture Global’s first facility, Calcasieu Pass, began producing LNG in January 2022. The company is also building or developing capacity in Louisiana, on the US Gulf coast to bring an additional 60 mta of production to global markets. The company is developing carbon capture and sequestration projects at each of its LNG facilities.
