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Venture Global takes US$8Bn FID on Plaquemines LNG phase two
Company issues full notice to proceed on construction for phase two after "the largest project financing ever done"
Venture Global LNG has taken a final investment decision (FID) and successfully closed US$7.8Bn in project financing for the second phase of the Plaquemines LNG facility. Together, phase one and phase two represent approximately $21 billion of investment, the largest project financing ever done.
The proceeds of the debt and equity financing fully fund the balance of construction and commissioning of the second phase of the 20 mtpa nameplate capacity project. Today, the company also issued a full notice to proceed to KZJV [the joint venture building the facility] to continue construction on phase two of Plaquemines LNG," a Venture Global release said.
The investment decision came less than 10 months after the FID on phase one, according to Venture Global CEO Mike Sabel, and the lending came from rougly two dozen of the world’s largest banks.
Plaquemines LNG has received all necessary permits, including FERC authorisation and non-FTA export authorisation from the US Department of Energy. Plaquemines LNG phase two customers include ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, PETRONAS and Excelerate Energy. Marketing is actively underway for the company’s third facility, CP2 LNG, and SPAs have been signed by CP2 LNG with Exxon Mobil, Chevron, EnBW, INPEX, China Gas and New Fortress Energy, according to Venture Global.
In June 2022, Venture global announced its LNG export project had secured the initial US$13.2Bn in funding.
Disclosed in May, the deal for the 13.33 mta American LNG export facility is the largest ever project financing raised in a single phase for a US liquefaction scheme, according to Poten & Partners.
It is the first US LNG project finance transaction to reach financial close since Venture Global obtained US$5.8Bn of funding for its 10-mta Calcasieu Pass LNG project in August 2019. Calcasieu Pass LNG loaded its first LNG cargo on the Maran Gas-owned Yiannis under a charter with JERA earlier in 2022.
“Calcasieu Pass now holds the global record for the fastest large-scale greenfield LNG facility to ever be built, moving from FID to LNG production in just 29 months. It is also one of the first greenfield LNG export projects to ever be constructed in the United States,” said Venture Global LNG in a press statement.
Located in Cameron, Louisiana, the Calcasieu Pass LNG export facility is unusual because it was built with factory-constructed modules. The facility has 18 liquefaction trains, each with a capacity of 0.626 mta, configured in nine blocks. The export facility has two ship-loading berths and two 200,000-m3 full containment LNG storage tanks. By year’s end, it is expected that Calcasieu Pass will be at full production capacity.
Plaquemines LNG will use the same modular construction approach as Calcasieu Pass. “Although Calcasieu Pass saw cost overruns of close to US$2Bn, if it had been a classic stick build, overruns could have been higher,” says Poten & Partners.
The EPC contractors for phase one of Plaquemines LNG are KBR and Zachry Group. Phase two will take the project to 20 mta. McDermott’s CB&I unit is building two 200,000 m3 storage tanks for phase one.
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