Arlington, Virginia-based Venture Global LNG announced a final investment decision (FID) for phase two of the Plaquemines LNG facility as well as closing $7.8 billion in project financing.
The total investment, including $13.2 billion for phase one, is approximately $21 billion, the largest LNG project financing ever done, the company announced in a March 13 press release.
“Venture Global is proud to announce a positive final investment decision for phase two of Plaquemines LNG, less than 10 months after sanctioning phase one,” Venture Global CEO Mike Sabel said in the release.
Plaquemines LNG phase two is the first U.S. project to take FID in 2023 and the project is expected to be the next new LNG capacity in North America. Russia’s invasion of Ukraine in February of 2022 has led to an increase in demand for U.S. LNG in Europe amid reduced energy flows of natural gas and other energy sources from Russia.
Proceeds from debt and equity financing will fully fund the balance of construction and commissioning of phase two of the 20 million tonnes per annum nameplate capacity project.
Venture Global also issued a full notice to proceed to KZJV to continue with construction of phase two of the Plaquemines LNG facility, which will be located 20 miles south of New Orleans. The facility has all the necessary permits, including Federal Energy Regulatory Commission authorization and non-free trade agreement export authorization from the U.S. Department of Energy.
RELATED: Latin America’s A&D Capital: Brazil
Customers in phase two of Plaquemines LNG include Exxon Mobil, Chevron, EnBW, New Fortress Energy, China Gas, PETRONAS and Excelerate Energy.
Additionally, marketing is actively underway for the company’s third facility, CP2 LNG. Sales and purchase agreements have already been signed with Exxon Mobil, Chevron, EnBW, INPEX, China Gas and New Fortress.
Recommended Reading
Galp Seeks to Sell Stake in Namibia Oilfield After Discovery, Sources Say
2024-04-22 - Portuguese oil company Galp Energia has launched the sale of half of its stake in an exploration block offshore Namibia.
Deepwater Roundup 2024: Offshore Australasia, Surrounding Areas
2024-04-09 - Projects in Australia and Asia are progressing in part two of Hart Energy's 2024 Deepwater Roundup. Deepwater projects in Vietnam and Australia look to yield high reserves, while a project offshore Malaysia looks to will be developed by an solar panel powered FPSO.
Texas Earthquake Could Further Restrict Oil Companies' Saltwater Disposal Options
2024-04-12 - The quake was the largest yet in the Stanton Seismic Response Area in the Permian Basin, where regulators were already monitoring seismic activity linked to disposal of saltwater, a natural byproduct of oil and gas production.
US Raises Crude Production Growth Forecast for 2024
2024-03-12 - U.S. crude oil production will rise by 260,000 bbl/d to 13.19 MMbbl/d this year, the EIA said in its Short-Term Energy Outlook.
NAPE: Chevron’s Chris Powers Talks Traditional Oil, Gas Role in CCUS
2024-02-12 - Policy, innovation and partnership are among the areas needed to help grow the emerging CCUS sector, a Chevron executive said.