Venture Global LNG is announcing a final investment decision (FID) and successful closing of the $13.2 billion project financing for the initial phase (an upsized 13.33 MTPA) of the Plaquemines LNG facility and the associated Gator Express pipeline.
This transaction represents the largest project financing in the world closed to date in 2022. The proceeds of the debt and equity financing fully fund the balance of construction and commissioning of the initial phase. This is the first LNG project located in the United States to reach financial close since Venture Global's Calcasieu Pass facility in August 2019.
"The Venture Global team is proud to announce FID on our second project, Plaquemines LNG, just months after exports began at Calcasieu Pass. I want to thank our team for their tireless efforts to support this remarkable achievement," said Mike Sabel, CEO of Venture Global LNG. "Plaquemines will build on the success of Calcasieu Pass, which broke global records for speed and execution. 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. I would like to thank our customers, lenders, advisors, construction partners and local partners in Louisiana for their trust and support."
Plaquemines LNG has received all necessary permits, including FERC authorization and non-FTA export authorization from the U.S. Department of Energy. In addition, the company has executed 20-year Sales and Purchase Agreements (SPAs) for 80% of the full 20.0 MTPA project. Plaquemines LNG phase one customers include PGNiG, Sinopec, CNOOC, Shell and EDF; phase two customers announced to date include ExxonMobil, PETRONAS and New Fortress Energy. Marketing is actively underway for the company's third facility, CP2, and two SPAs with ExxonMobil and New Fortress Energy have already been executed for this project.
