Worley clinches EPC contract for Venture Global’s CP2 LNG project

Australian engineering firm Worley has secured a reimbursable engineering, procurement, and construction (EPC) contract for the first phase of Venture Global’s planned CP2 LNG terminal in Louisiana.

Worley announced in May this year that the two firms agreed substantive terms for the reimbursable EPC contract.

The company said at the time that it expects to finalize and sign the contract in “the near future”.

“Since Worley’s announcement on May 10, 2023 of the agreement of substantive terms with Venture Global, the parties have executed a reimbursable EPC contract for Phase 1 of Venture Global’s CP2 LNG terminal in Louisiana, USA,” Worley said in a statement on December 21.

However, Venture Global’s CP2 LNG terminal is awaiting the final approval from the Federal Energy Regulatory Commission (FERC) and also the non-FTA export authorization from the Department of Energy.

Worley said it would notify the market of Venture Global’s receipt of the FERC authorization.

“In the meantime, Worley is working with Venture Global under the EPC contract to progress
the engineering, procurement, and construction services required to prepare the project for
construction commencement,” the firm said.

CP2 LNG construction

US LNG exporter Venture Global said in July it was “on track” to start construction later this year on its proposed CP2 LNG terminal after it received a positive final environmental impact statement from the FERC.

The CP2 LNG plant will be located next to Venture Global’s existing Calcasieu Pass liquefaction plant in Louisiana, which still has not declared commercial operations. Venture Global is also building the Plaquemines LNG plant in Louisiana.

The new facility 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.

In June, Venture Global signed a sales and purchase deal with German gas importer Securing Energy for Europe (SEFE).

SEFE joined other CP2 LNG customers, including ExxonMobil, Chevron, Jera, New Fortress Energy, Inpex, China Gas, and EnBW.

To date, 9.25 mtpa of the 20 mtpa nameplate capacity for CP2 has been sold, Venture Global previously said.

Lately, SEFE, Jera, and Inpex sent letters to the FERC seeking approval from the regulator.

Japan’s Inpex said in its letter earlier this month that it hopes Venture Global would start construction early next year upon obtaining the necessary government approvals.

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