Worley, Venture Global ink CP2 LNG deal

Australian engineering firm Worley and US LNG exporter Venture Global LNG have signed a deal for the construction of the latter’s proposed CP2 LNG export terminal in Louisiana.

According to a statement issued by Worley on Wednesday, the two firms have agreed substantive terms for a reimbursable engineering, procurement and construction (EPC) contract for Phase 1 of Venture Global’s CP2 LNG terminal.

Worley said the parties expect to finalize and sign the reimbursable EPC contract in “the near future”.

Under the contract, Worley will provide full EPC execution, including engineering, procurement, direct-hire construction, commissioning, and start up for Phase 1 of CP2.

The reimbursable EPC contract, once signed, will be led by Worley’s Houston and Reading offices and supported by the company’s Global Integrated Delivery (GID) offices in India.

Worley said the full notice to proceed is expected to be issued after Venture Global takes a final investment decision.

Venture Global expects to start construction on the CP2 LNG project later in 2023, following receipt of Federal Energy Regulatory Commission (FERC) authorization, Worley added.

The US LNG exporter recently signed a long-term LNG supply deal with Japan’s LNG trading giant and power firm, Jera.

Under the SPA, Jera will buy 1 million tonnes of LNG per year for a period of 20 years from Venture Global’s CP2 LNG terminal from the start of commercial operations.

Also, the company has announced SPAs for over a third of the 20 mtpa nameplate facility up to date with active discussions ongoing for the remainder of its capacity, Venture Global said at the time.

The plant will be located next to its existing Calcasieu Pass liquefaction plant in Louisiana.

It will have 18 liquefaction blocks, each with a capacity of about 1.1 mtpa of LNG, but also four 200,000-cbm full containment LNG storage tanks.

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