U.S. energy player Venture Global has taken a final investment decision (FID) and closed the project financing for the first phase of its liquefied natural gas (LNG) export project in Louisiana, United States.
According to Venture Global, the FID, in combination with the $15.1 billion project financing for Phase 1 of CP2 LNG, represents the formal launch of its third LNG project. The firm believes the project will make it the largest exporter of U.S. LNG.
The financing, which covers the associated CP Express Pipeline, is described by Venture Global as the largest standalone project financing ever, and the second largest project financing after the combined financings of its Plaquemines LNG facility.
The transaction garnered what the company says is “enormous” interest from leading global banks, signaling demand for U.S. LNG investment in the country, and in Europe and Asia. This resulted in over $34 billion of commitments, requiring no outside equity investment.
The lender group comprises players such as Bank of America, Barclays, CIBC, Deutsche Bank, Goldman Sachs, Intesa, J.P. Morgan, Santander, Scotiabank, and Wells Fargo, among others.
“We are extremely proud to have taken FID on our third greenfield project in under 6 years with over $80 billion in capital markets transactions executed to date,” said Venture Global CEO Mike Sabel . “Our significant early investments and work on the project make CP2 the most advanced project at FID to date. This project, fully owned by Venture Global and our shareholders, is expected to deliver reliable American LNG to the world beginning in 2027.”
Boasting a peak capacity of 28 million tonnes per annum (mtpa), the CP2 LNG terminal is envisaged to have 36 liquefaction trains, configured in 18 blocks, each with a 0.626 mtpa capacity. Venture Global is targeting its first LNG exports in Q3 2027.
The CP Express pipeline is set to originate in Jasper and Newton County, Texas, before it ends at the LNG project in Cameron Parish, where it will feed natural gas to the proposed LNG facility.
The project’s Phase 1 has contracted long-term sales and purchase agreements (SPAs) with various customers, including Italy’s Eni , Malaysia’s Petronas , and Germany’s SEFE .
In mid-June, Worley said it was nearing the start of work at the facility. Shortly before that, the start of site work was announced, when full mobilization to the project location for Phase 1 commenced.