Venture Global takes FID on second Plaquemines LNG phase

US firm Venture Global LNG has taken a final investment decision for the second phase of its Plaquemines LNG export plant in Louisiana. The company also secured $7.8 billion in project financing.

Plaquemines Phase Two is the first project to take FID in 2023, Venture Global said in a statement on Monday.

The company took a final investment decision last year on the first phase of the Plaquemines project with a capacity of 13.3 mtpa and the related pipeline.

The full project, including the second stage, will have a capacity of 20 mtpa coming from 36 modular units, configured in 18 blocks.

Together, phase one and phase two represent about $21 billion of investment, the largest project financing ever done, according to Venture Global.

Venture Global said that the lender group for the construction financing includes the world’s leading banks.

Some of the banks are BBVA, Bank of America, Bank of China, Deutsche Bank, ING, J.P. Morgan Chase, Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, and KfW Ipex-Bank.

KBR and Zachry

A joint venture of KBR and Zachry, which is building the first phase of the facility, will construct the second phase of the project.

Venture Global issued a full notice to proceed on Monday to KZJV to continue construction on the phase two of Plaquemines LNG, it said.

As per Plaquemines LNG phase two customers, they include ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, Petronas, and Excelerate Energy.

“Venture Global is proud to announce a positive final investment decision (FID) for phase two of Plaquemines LNG, less than 10 months after sanctioning phase one,” CEO Mike Sabel said in the statement.

“Our company’s continued ability to commercialize, obtain financing and build our projects in an extremely competitive market is a testament to our team’s proven track record of discipline and execution,” he said.

Working on third project

Venture Global is already exporting LNG from its Calcasieu Pass plant in Louisiana, and the Plaquemines LNG facility will be its second operational plant.

However, the firm is working on two more projects, namely CP2 LNG and Delta LNG.

Venture Global noted that marketing is actively underway for the company’s third facility, CP2 LNG.

The firm already signed SPAs for this project with ExxonMobil, Chevron, EnBW, Inpex, China Gas, and New Fortress Energy.

Venture Global said in 2021 it would invest more than $10 billion in the LNG project which would be located next to its Calcasieu Pass liquefaction plant in Louisiana.

CP2 LNG includes the construction of a terminal with a nameplate liquefaction capacity of 20 mtpa and a peak capacity of about 24 mtpa.

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