Standard Chartered, an international banking group, has shed light on its role in securing a multibillion-dollar financing for a liquefied natural gas (LNG) export project in Louisiana, which is the third such facility Venture Global, an American producer of LNG sourced from North American basins, has put the wheels in motion to build in the United States over the past five years.
Standard Chartered, which claims to have played a pivotal role in closing a $15.1 billion financing for the first phase of Venture Global’s CP2 LNG project, describes the achievement as a milestone transaction that marks the largest standalone project financing ever completed, attracting over $34 billion in commitments from financial institutions worldwide.
The bank supported a $12.1 billion project financing package and a $3 billion equity bridge loan (EBL), acting as the initial coordinating lead arranger and hedging bank for the term loan and working capital facility, and as the top-tier coordinating lead arranger for the EBL.
Sridhar Nagarajan , Head of Infrastructure and Development Finance Group for the Americas at Standard Chartered, commented: “This transaction exemplifies Standard Chartered’s ability to lead from the front on complex financings, bringing together capital, risk solutions, and deep sector expertise. As an Initial Coordinating Lead Arranger and Hedging Bank, we are pleased to support Venture Global in this marquee project and in their mission to provide low-cost LNG to the world.
“This financing also highlights Standard Chartered’s leadership in project finance and our commitment to support investment in critical infrastructure globally. With this milestone, we continue to demonstrate our ability to deliver innovative solutions that connect clients to growth opportunities across dynamic global markets.”
This comes shortly after Worley received full notice to proceed with its work on the first phase of the project under a reimbursable engineering, procurement, and construction (EPC) contract, following the launch of site work and the initiation of full mobilization at the development, for which Venture Global took a final investment decision (FID) on July 28 and closed the project financing.
The CP2 LNG project, which is expected to achieve a peak production capacity of 28 million tonnes per annum (mtpa), has obtained long-term sales and purchase agreements for Phase 1 with customers in Europe, Asia, and the rest of the world.
A proposed CP Express pipeline , which will originate in Jasper and Newton County, Texas, will end at the LNG project, where it will feed natural gas to the LNG facility. This $28 billion LNG terminal is situated on an approximately 1,150-acre site alongside the Calcasieu Ship Channel in Cameron Parish, Louisiana.