Pointe LNG in cash hunt for Louisiana project

Pointe LNG has appointed a financial adviser as it is looking to secure funds for its proposed export project in Louisiana.

The US LNG project developer has mandated Whitehall & Company as financial advisor.

The firm will help raising investment capital and securing offtake for the 6 mtpa project in Plaquemines Parish.

According to Pointe LNG, the mid-scale project will require up to $4 billion investment, including $56 million of development capital.

This marks the return of the Pointe LNG team, composed of co-founders Tom Burgess and Jim Lindsay, to the development.

The team had previously worked on the project in this same location named Louisiana LNG Energy.

They sold the LNG project in 2015 to a joint venture of Cheniere and Parallax.

However, as the duo did not complete the project due to internal disputes, the team resumed the development.

Pointe LNG claims the project will be the lowest-cost greenfield LNG development in the U.S. with costs less than $600/ton.

The terminal will be located near two major gas pipelines and the site will not require dredging or soil remediation.

The site along the Mississippi River has over 9,200 feet of riverfront, allowing for potential future expansion.

“The project will be well-positioned to provide offtakers competitively priced LNG supply beginning in the mid-2020s as the second wave of global demand outstrips the existing supply driven by the continued global move towards gas-fired generation,” the statement said.

Pointe LNG expects to secure the project’s development capital in the third quarter of this year.

The developer is targeting a final investment decision for mid-2022 and expects commercial operations of the LNG facility in 2026.

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