Venture Global LNG has reached financial close for its $4.5bn (£3.71bn) Calcasieu Pass LNG project and associated TransCameron pipeline to be built in Louisiana.
To be built in Cameron Parish, the Calcasieu Pass LNG facility will have a nameplate capacity of 10 million tonnes per annum (MTPA). The associated TransCameron Pipeline will be a 38.6km long, 42inch natural gas pipeline that will extend from the LNG terminal to near Grand Chenier, Louisiana where it will connect to more than three interstate and intrastate pipelines.
Last month, Venture Global LNG secured more than $10bn (£8.25bn) in binding commitments from initial coordinating lead arrangers made up of various banks for the project construction.
In May, the company bagged an equity investment of $1.3bn (£1.07bn) from Stonepeak Infrastructure Partners to advance the Calcasieu Pass LNG project.
Venture Global LNG expects the proceeds of the debt and equity financing to fully fund the balance of the construction and commissioning of the LNG terminal, located at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico.
Calcasieu Pass LNG project commissioning targeted for 2022
The company had been executing full site construction on the project since February 2019 and is targeting a commercial operations date (COD) in 2022.
Venture Global LNG co-CEOs Mike Sabel and Bob Pender said: “Our goal has always been to lower the cost of electricity by delivering clean, low-cost LNG to the world. The closing of our financing is the culmination of years of hard work, and we want to sincerely thank our Venture Global team, our construction partners, our foundation customers, our lenders and advisors, Cameron Parish and our local partners in Louisiana.”
The LNG project has all the necessary permits in place, which includes authorisation from the US Federal Energy Regulatory Commission (FERC) and non-FTA export authorisation from the US Department of Energy.
Supporting the Calcasieu Pass LNG project are 20-year LNG sale and purchase agreements with Shell, BP, Edison, Galp, PGNiG, and Repsol.
In addition to Calcasieu Pass, Venture Global LNG is developing the 20MTPA Plaquemines LNG project and the 20MTPA Delta LNG project, both located in Plaquemines Parish in Louisiana.
