Venture Global LNG said it has closed a $500 million term loan with several global banks to fund pre-FID construction activities for its Plaquemines LNG project in Louisiana.
The banks include JPMorgan Chase Bank, Morgan Stanley Senior Funding, Mizuho Bank, and Bank of America.
Besides the Plaquemines LNG export project, the US firm will use the funds for general corporate purposes as well, it said in a statement.
The transaction was upsized from $400 million to $500 million based on strong lender interest, Venture Global said.
“We are proud to continue to partner with this group of leading banks, all of whom are lenders to our Calcasieu Pass LNG export facility, as we move towards the launch of full construction on Plaquemines LNG in 2021,” CEO Mike Sabel, said.
Plaquemines LNG will deploy Venture Global’s liquefaction trains 19 through 36, identical to the 18 trains currently being delivered and installed at its Calcasieu Pass project.
The Plaquemines LNG project has previously received all required regulatory approvals.
Venture Global selected KBR as the lead contractor in November last year.
Additionally, the project has binding 20-year offtake agreements with Poland’s PGNiG for 2.5 mtpa and France’s EDF for 1 mtpa capacity.
Moreover, the full project includes 20 mtpa capacity, four tanks and three jetties.
According to Venture Global’s website, the firm plans to launch commercial operations in 2024 but it first needs to take a final investment decision.