May 25—Venture Global LNG has closed on $13.2 billion in financing for its one of its two liquefied natural gas export terminals in Plaquemines Parish.
The funds should cover the initial phase of construction for Plaquemines LNG and its associated natural gas pipeline project, Gator Express. The facility is expected to export up to 13.33 million metric tons of LNG per year.
A Venture Global LNG news release said the Plaquemines LNG package is the largest financial closing in the world in 2022 and the first LNG project in the U.S. to secure financing since the company got money for its Calcasieu Pass LNG terminal in 2019. Calcasieu Pass began operations in January.
Nearly 20 financial institutions are backing Plaquemines LNG, Venture Global LNG said. Lenders include Bank of America, Bank of China, Deutsche Bank, Goldman Sachs, JPMorgan Chase and Morgan Stanley, among others.
"Plaquemines will build on the success of Calcasieu Pass, which broke global records for speed and execution," Venture Global LNG CEO Mike Sabel said in a statement. "The project has attracted robust financial and commercial support which has enabled us to formally sanction this project at a critical moment for energy markets. Speed matters more than ever and Venture Global is uniquely positioned to quickly bring US LNG to the market to support global energy security and environmental progress."
Venture Global LNG said the Plaquemines LNG facility has received all of its necessary permits, including approvals from the Federal Energy Regulatory Commission, as well as the Department of Energy's blessing to export LNG to non-free trade countries. Construction began on Plaquemines LNG in August.
The facility is expected to come online in 2024.
Plaquemines LNG already has supply agreements in place with PETRONAS in Malaysia, ExxonMobil LNG Asia Pacific, New Fortress Energy Inc., Shell NA LNG, China National Offshore Oil Corp., PGNiG and Sinopec.
Two other LNG export facilities have been lined up by Venture Global LNG: CP2 LNG in Cameron Parish near Calcasieu Pass, and Delta LNG in Plaquemines Parish.
Construction of CP2 is expected to start in 2023, while FERC filings indicate Venture Global is still developing its federal and state permit applications for Delta LNG.
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