Venture Global Reaches FID on Plaquemines LNG Phase Two
Plaquemines Phase 2 is the first project to take FID in 2023 and is expected to be the next new LNG capacity in North America.
Venture Global LNG has made a final investment decision (FID) and successful closing of the $7.8-billion project financing for the second phase of the Plaquemines LNG facility. Together, Phase 1 and Phase 2 represent $21 billion of investment. The proceeds of the debt and equity financing fully fund the balance of construction and commissioning of the second phase of the 20-mtpa nameplate capacity project. Additionally, the company also issued a full notice to proceed to KZJV, a joint venture comprising Zachry Group (construction firm) and KBR (engineering firm), to continue construction on Phase 2.
“Venture Global is proud to announce a positive final investment decision for Phase 2 of Plaquemines LNG, less than 10 months after sanctioning Phase 1,” said Mike Sabel, chief executive of Venture Global LNG. “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. I would like to thank our customers, lenders, advisors, construction partners, and local partners in Louisiana for their continued support. 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.”
Plaquemines LNG has received all necessary permits, including FERC authorization and non-FTA export authorization from the US Department of Energy. Its Phase 2 customers include ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, Petronas, and Excelerate Energy. Marketing is underway for the company’s third facility, CP2 LNG, and sales and purchase agreements have been signed with ExxonMobil, Chevron, EnBW, INPEX, China Gas, and New Fortress Energy.
The Plaquemines LNG terminal is located on a 632-acre plot with 1.3 miles of deepwater frontage and will ultimately host up to thirty-six 0.626-mtpa liquefaction trains, configured in 18 blocks.