Venture Global Inc. on Monday announced a positive FID (final investment decision) and the closing of $15.1 billion in financing for phase I of the CP2 LNG project and the associated CP Express Pipeline.
CP2 LNG, in Cameron Parish, Louisiana, holds a federal permit to export the equivalent of 1.45 trillion cubic feet a year of natural gas or about 28 million metric tons per annum of liquefied natural gas (LNG).
The Arlington, Viriginia-based developer did not specify in Monday’s announcement how much of that capacity the first phase would build.
“This milestone represents the largest standalone project financing ever, and the second largest project financing after the combined financings of Venture Global’s Plaquemines LNG”, Venture Global said. “The transaction garnered enormous interest from the world’s leading banks, resulting in over $34 billion of commitments, and required no outside equity investment”.
ING and Santander served as lead arrangers for phase I’s construction term loan and working capital facility. Bank of America and Scotiabank were lead arrangers for its equity bridge loan.
“The lender group for the construction financing is comprised of the world’s leading banks, signaling significant demand for U.S. LNG investment not only in the United States but also in Europe and Asia”, Venture Global said.
“Phase 1 has contracted long-term SPAs [sale and purchase agreements] with customers in Europe, Asia and the rest of the world”, it said.
Chief executive Mike Sabel said, “We are extremely proud to have taken FID on our third greenfield project in under six years with over $80 billion in capital markets transactions executed to date”.
“Our significant early investments and work on the project make CP2 the most advanced project at FID to date”, Sabel added.
Last month Venture Global said it had started site work at CP2 LNG after receiving final clearance from the Federal Energy Regulatory Commission. Venture Global expects to start operations at its third LNG project in 2027.
While CP2 LNG secured authorization for its export volume, under a Department of Energy (DOE) order April 2022, the permit is only for export to countries with a free trade agreement (FTA) with the United States.
In March the DOE conditionally granted the non-FTA portion. The DOE said it was withholding a final order pending a review of permitting considerations launched by the previous administration.
In May the DOE said it was ready to proceed with issuing final orders on pending applications after ruling that the review initiated by the Biden government supported U.S. LNG expansion.
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