FID For $13.2B Louisiana LNG Project

FID For $13.2B Louisiana LNG Project
This transaction represents the largest project financing in the world closed to date in 2022.

Venture Global LNG has announced the successful closing of the $13.2 billion project financing for the initial phase of the Plaquemines LNG facility and the associated Gator Express pipeline, along with a final investment decision (FID).

This transaction represents the largest project financing in the world closed to date in 2022, according to Venture Global, which said the proceeds of the debt and equity financing fully fund the balance of construction and commissioning of the initial phase. This is said to be the first LNG project located in the U.S. to reach financial close since the company’s Calcasieu Pass facility in August 2019. 

The lender group for the company’s construction financing includes the world’s leading banks, spanning multiple continents, Venture Global noted. Plaquemines LNG has received all necessary permits, including FERC authorization and non-FTA export authorization from the U.S. Department of Energy, the company highlighted. Venture Global also pointed out that it has executed 20-year sales and purchase agreements for 80 percent of the full 20 million ton per annum project. 

“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,” Mike Sabel, the CEO of Venture Global LNG, said in a company statement.

“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,” he added in the statement.

“Speed matters more than ever and Venture Global is uniquely positioned to quickly bring U.S. LNG to the market to support global energy security and environmental progress. I would like to thank our customers, lenders, advisors, construction partners and local partners in Louisiana for their trust and support,” Sabel went on to say.

On May 11, Venture Global and Petronas LNG Ltd announced the execution of a 20-year sales and purchase agreement for the purchase of one million tons per annum of LNG from the Plaquemines LNG facility. On May 10, Venture Global announced the execution of two long-term sales and purchase agreements with ExxonMobil LNG Asia Pacific for the sale of two million tons per annum of LNG. Under the deals, the ExxonMobil affiliate will purchase one million tons per annum from Plaquemines as well as one million tons per annum from the CP2 LNG facility.

On March 16, Venture Global revealed that it has executed two long-term 20-year sales and purchase agreements with New Fortress Energy Inc, including one million tons per annum from Plaquemines and one million tons per annum from CP2 LNG. On March 7, Venture Global LNG announced the execution of a long-term 20-year sales and purchase agreement with Shell NA LNG LLC for the supply of two million tons per annum of LNG from Plaquemines.

The 630-acre Plaquemines LNG facility site is situated in Plaquemines Parish, Louisiana, approximately 20 miles south of New Orleans, Venture Global’s website shows. The development is on the Mississippi River, with approximately 1.3 miles of river frontage, providing deep-water access without the need for dredging, the site outlines.

Plaquemines is one of four projects for Venture Global. Calcasieu Pass, Delta and CP2 LNG are the company’s other three developments.

To contact the author, email andreas.exarheas@rigzone.com


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