Positive FIDs to push US LNG export capacity to 167 mta by 2028

Positive FIDs taken in March on two new massive greenfield LNG export facilities, combined with other projects under construction, will raise American liquefaction capacity by more than 60% in five years.

This does not include other projects that have been approved by the US Department of Energy (DOE) but not yet reached FID. Data as of the end of March 2023 reported by the DOE shows US LNG export capacity will grow from 104.6 mta to 167.6 mta by 2028.

One of those FIDs in March was taken by Venture Global LNG, which closed on US$7.8Bn in project financing for the second phase of the Plaquemines LNG facility in Plaquemines Parish, Louisiana. Combined, the project’s two phases represent about US$21.0Bn 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-mta nameplate capacity project, and Venture Global LNG has given the green light to KZJV to fully proceed with construction on Phase Two of Plaquemines LNG.

On 17 April, Venture Global LNG reported it successfully raised the roof on its second of four 200,000-m³ storage tanks for Phase One and Phase Two of the LNG facility.

The investment decision came less than 10 months after the FID on phase one, according to Venture Global chief executive Mike Sabel, and the lending came from roughly two dozen of the world’s largest banks.

In June 2022, Venture Global announced its 13.3 mta LNG export project had secured the initial US$13.2Bn in funding.

Disclosed in May, the deal for Plaquemines LNG export facility is the largest-ever project financing raised in a single phase for a US liquefaction scheme, according to Poten & Partners.

Meanwhile, Sempra’s 70%-owned subsidiary Sempra Infrastructure reached a positive FID for the development, construction and operation of the Port Arthur LNG Phase 1 project in Jefferson County, Texas.

Sempra Infrastructure announced the closing of the project’s US$6.8Bn non-recourse debt financing and the issuance of the final notice to proceed under the project’s engineering, procurement and construction agreement.

The Port Arthur LNG Phase 1 project is fully permitted and is designed to include two liquefaction trains, two LNG storage tanks and associated facilities with a nameplate capacity of approximately 13.0 mta. Total capital expenditure for the Port Arthur Phase 1 project are estimated at US$13.0Bn.

Capacity of approximately 10.5 mta is fully subscribed under long-term agreements with ConocoPhillips, RWE Supply and Trading, INEOS and Engie, according to Sempra.

Large-scale US LNG facilities that have taken FID