US-based Venture Global LNG has made a final investment decision (FID) for the second phase of the Plaquemines LNG facility in Louisiana, US.
The LNG company has also secured $7.8bn project financing to support the construction and commissioning of the second phase of the 20 million tonnes per annum (Mtpa) nameplate capacity project.
Together, phases one and two of the Plaquemines LNG project involve an investment of nearly $21bn, which marks the largest project financing ever done, said Venture Global.
The LNG producer has also given full notice to proceed to KZJV to continue the development of phase two of Plaquemines LNG.
KZJV is a joint venture between Zachry Group and KBR. The JV was assigned to execute the development, engineering, procurement and construction under the EPC contract for the initial phase of the LNG facility in 2021.
Venture Global LNG CEO Mike Sabel said: “Venture Global is proud to announce a positive final investment decision (FID) for phase two of Plaquemines LNG, less than 10 months after sanctioning phase one.
“Our company’s continued ability to commercialise, obtain financing and build our projects in an extremely competitive market is a testament to our team’s proven track record of discipline and execution.”
The FID and financial close of $13.2bn for the initial phase of the Plaquemines LNG facility and the associated Gator Express pipeline was achieved in May 2022.
The company has secured all necessary permits, including FERC authorisation and non-FTA export authorisation from the US Department of Energy (DoE) for the Plaquemines LNG project.
Phase two of the project will serve customers including ExxonMobil, Excelerate Energy, Chevron, EnBW, China Gas, New Fortress Energy, and Petronas.
Venture Global said marketing is ongoing for its third facility, CP2 LNG. CP2 LNG has signed sales and purchase agreements (SPAs) with Exxon Mobil, Chevron, EnBW, INPEX, China Gas and New Fortress Energy.
