Venture Global, Inc. announced that its subsidiary, Venture Global CP2 LNG, LLC (CP2), has secured commitments from 19 banks for a $3 billion bank loan facility to continue manufacturing, procurement and engineering of its natural gas liquefaction and export facility, begun in early 2023, to be located alongside the Calcasieu Ship Channel in Cameron Parish, Louisiana.
The company previously announced it had launched the formal FID process for CP2 in March.
“Venture Global is proud to close this major financing for CP2, which is slated to receive its first two liquefaction trains — number 55 and 56 deployed by Venture Global — in the coming months. This new capital, on top of the more than $4 billion we have already invested to date, will enable continued fabrication, manufacturing and procurement at an accelerated pace, similar to Plaquemines. This strategically important project for the United States will quickly bring new American LNG supply to the global market, equalizing the balance of trade with other nations and supporting global energy security,” said Venture Global CEO Mike Sabel.
CP2 is expected to have peak production capacity of up to 28.0 MTPA. CP2 intends to use the net proceeds of the CP2 Bank Loan to pay project costs and fund reserves for debt service, fees, and other expenses associated with the Facility.
The borrowings are guaranteed by Venture Global CP Express, LLC and CP2 Procurement, LLC, each an affiliate of CP2. The Facility is secured by a first-priority perfected security interest in substantially all assets of and the membership interests in CP2 and each of the Guarantors.
SMBC served as Left Lead Arranger and Sole Bookrunner and will also serve as Administrative Agent going forward. Caixabank and LBBW served as Right Lead Arrangers. Bank of America, BBVA, Deutsche Bank, Goldman Sachs, ING, J.P. Morgan, Mizuho, MUFG, NBC, RBC, Santander, Scotiabank, and Wells Fargo served as Coordinating Lead Arrangers, and Regions, ICBC, and NordLB served as Joint Lead Arrangers.
