Venture Global LNG has reached final investment decision (FID) on the second phase of its Plaquemines LNG project.
The company took FID on the first phase in May 2022. The initial $13.2 billion phase will produce 13.33 million tonnes per year. Bringing on Phase 2 increases the project cost to $21bn. Venture Global reported this as the largest project financing ever.
Zachry Group and KBR, in a joint venture of KZJV, will build the facility.
Phase 2 brings Plaquemines LNG capacity to 20mn tpy. Venture Global is working on sales for its next facility, CP2.
“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,” said CEO Mike Sabel.
“Our team will continue to deliver on our mission to bring more clean, low-cost US LNG to the global market in the coming years to support the world’s rapidly growing demand for energy.”
ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, Petronas and Excelerate Energy have contracted gas from this expansion.
It has also reached agreements on CP2 with Exxon, Chevron, EnBW, Inpex, China Gas and New Fortress Energy.
Lenders for the project are BBVA, Banco Santander, Bank of America, Bank of China, Caixa Bank, Deutsche Bank, Goldman Sachs, ICBC Standard, ING, J.P. Morgan Chase, LBBW, Mizuho, MUFG, Natixis, Royal Bank of Canada, Sumitomo Mitsui Banking Corporation, The Bank of Nova Scotia, Wells Fargo Bank, National Bank of Canada, KfW Ipex-Bank, Helaba, DZ Bank and Regions Bank.
CP2 LNG will also have 20mn tpy of capacity, also in Louisiana.