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Venture Global recently took FID on the first phase of its CP2 LNG project. First LNG from this phase is expected in late 2027.
The company also closed the $15.1 billion project financing, claiming that it represents the largest standalone project financing ever, and the second-largest project financing after the combined financings of Venture Global’s Plaquemines LNG.
The CP2 LNG plant site is situated adjacent to Venture Global’s existing Calcasieu Pass liquefaction plant in Louisiana, which commenced commercial operations in April.
“Phase One has a nameplate capacity of 14.4 mtpa, but following the improvements we have made as a result of our ongoing optimization efforts, we believe the peak run rate production level of Phase 1 should be closer to 20 mtpa,” Sabel said on Thursday during Venture Global’s second-quarter earnings call.
“Including Phase two, which we expect FID in 2026, the 36 factory-built liquefaction trains from both phases should be capable of production of 28 mtpa once completed and commissioned,” Sabel said.
He said that Venture Global continues to estimate more than 550 LNG cargoes will be exported during the construction and commissioning of the project’s two phases.
Ssbel noted that there are now over 1,200 people and more than 500 major pieces of construction equipment on-site.
“In particular, I’d highlight that Baker Hughes has completed the first two liquefaction trains, which are currently being stored at its fabrication facility in Italy,” he said.
SPAs
Sabel noted that Venture Global recently signed two new 20-year offtake agreements with Malaysia’s Petronas and Italy’s Eni for CP2 volumes.
In addition, Venture Global signed a 20-year LNG supply contract with German gas importer Securing Energy for Europe (SEFE).
“Collectively, these three new commitments bring the total contracted volume for CP2 up to 13.5 mtpa,” he said.
“At this point, we are contracting for Phase 2, which has 5.6 mtpa of nameplate capacity with expected peak production capacity of about eight mtpa,” the CEO said.
“Following several additional offtake agreements, we anticipate Phase two FID at some point next year, funded by internally generated cash flow and project financing similar to what we executed for Phase 1,” Sabel said.
Costs up
Sabel also answered a question about whether Venture Global expects costs for both of the CP2 phases to rise, given EPC inflation and potential tariff impacts.
Venture Global previously said that it estimates the total project costs for the CP2 project, including both phases, will range from about $27 billion to $28 billion.
“We feel good about the ranges that we’re guiding to now, but it is a very tough market. There’s still wage inflation out there. You know, in our case, not so much for Phase 1, but Phase 2 and Phase 3 of CP2, there’s still tariff uncertainty. So, yeah, there’s still lots of challenges out there,” he said.
CFO Jack Thayer said that “you may have noticed in our 10-Q that we took our total project guidance CP2 Phase 1 and 2 up to $28.5 billion to $29.5 billion.”
“That leverages the fully financed budget and understood cost structure for Phase 1 of CP2,” he said.
“And then it incorporates some of the learnings from that process, specifically higher interest rates as we’ve navigated a higher interest rate environment. We’ve accounted for that in our Phase 2 forecast,” Thayer said.
