I Squared Capital, a global infrastructure investment manager, has revealed that it has made an equity investment of $460m (£366.7m) in US liquefied natural gas (LNG) developer Venture Global LNG.
Based in Virginia, Venture Global LNG is engaged in developing the Plaquemines, Calcasieu Pass, and Delta LNG projects in the US.
I Squared Capital’s investment in the LNG developer has been made through its ISQ Global Infrastructure Fund II. It is part of the $675m (£538.1m) additional capital raised by the LNG developer from institutional investors, as announced in June 2019.
Venture Global LNG, at that time, said that it plans to use the capital primarily for pushing ahead with its Plaquemines LNG export project in Louisiana.
Venture Global LNG co-CEOs Bob Pender and Mike Sabel said: “We are delighted to partner with I Squared Capital, a leading global infrastructure investor, as we build over 60 MTPA of LNG production capacity in Louisiana. This investment will support the development of our pipeline of opportunities along the Gulf Coast.”
I Squared Capital said that its investment will be used for the further development of Plaquemines and also for the other current projects of Venture Global LNG. All the LNG projects of the company are set to be equipped with a process solution from GE’s Baker Hughes that will utilise highly efficient mid-scale, modular, factory-fabricated liquefaction trains.
I Squared Capital managing partner Gautam Bhandari said: “We are excited to support Venture Global LNG and its exceptional management team for years to come as they become a global leader in LNG production, leveraging both their highly cost-efficient liquefaction technology and affordable U.S. shale gas.
“Our investment gives us exposure to Venture Global’s entire pipeline of highly innovative projects, which will transform how LNG liquefaction facilities will be built in the future.”
Venture Global LNG facilities
The Plaquemines LNG facility, which will have a capacity of 20 million tonnes per annum (mtpa), is scheduled to begin full commercial operations in 2023.
The Calcasieu Pass LNG facility, which will have a capacity of 10MTPA, is under construction in Cameron Parish, Louisiana, at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico.
The third project, which is the 20MTPA Delta LNG facility, is proposed to be constructed on the Mississippi River, south of New Orleans.
Till date, Venture Global LNG has raised total committed capital of around $2.83bn (£2.26bn) to support the development of the LNG projects.
