Venture Global LNG takes FID on Plaquemines LNG project

U.S. LNG export project developer Venture Global LNG has announced a final investment decision (FID) and closing of the $13.2 billion financing for the Plaquemines LNG facility and the associated pipeline.

On 25 May 2022, the company said it took an FID for the first phase of Louisiana’s Plaquemines LNG export facility. The first phase includes a capacity of 13.33 million tonnes per annum (MTPA).

Venture Global LNG also secured $13.2 billion in project financing. According to the company, this transaction represents the largest project financing in the world closed to date in 2022. The debt and equity financing proceeds fully fund the balance of construction and commissioning of the initial phase.

In addition, this is the first LNG project located in the U.S. to reach financial close since Venture Global’s Calcasieu Pass facility in August 2019.

“The Venture Global team is proud to announce FID on our second project, Plaquemines LNG, just months after exports began at Calcasieu Pass,” said Mike Sabel, CEO of Venture Global.

“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.”

Plaquemines LNG has received all necessary permits, including FERC authorisation and non-FTA export authorisation from the U.S. Department of Energy. In addition, the company has executed 20-year sales and purchase agreements (SPAs) for 80 per cent of the full 20.0 MTPA 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.

Marketing is actively underway for the company’s third facility, CP2, and two SPAs with ExxonMobil and New Fortress Energy have already been executed for this project.

The lender group for the company’s construction financing includes the world’s leading banks, spanning multiple continents.

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