Venture Global takes FID for phase two of Plaquemines LNG

US LNG producer Venture Global LNG has taken a final investment decision (FID) for the second phase of the Plaquemines LNG facility in Louisiana.

On 13 March, the company announced the FID and successful closing of the $7.8 billion project financing for the second phase of the project. The FID for the first phase was taken in May 2022.

Together, phase one and phase two represent approximately $21 billion of investment, which is said to be the largest project financing ever done.

According to Venture Global, the proceeds of the debt and equity financing fully fund the balance of construction and commissioning of the second phase of the 20 million tonnes per annum (mtpa) nameplate capacity project.

Together with the FID, the company also issued a full notice to proceed to KZJV, a joint venture between KBR and Zachary group, to continue construction on phase two of Plaquemines LNG.

“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”, said Mike Sabel, CEO of Venture Global LNG.

“Our company’s continued ability to commercialize, 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.  I would like to thank our customers, lenders, advisors, construction partners and local partners in Louisiana for their continued support. Our team will continue to deliver on our mission to bring more clean, low-cost US LNG to the global market in the coming years to support the world’s rapidly growing demand for energy.”

Plaquemines LNG has received all necessary permits, including FERC authorization and non-FTA export authorisation from the U.S. Department of Energy (DOE).

Plaquemines LNG phase two customers include ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, PETRONAS and Excelerate Energy.

Marketing is actively underway for the company’s third facility, CP2 LNG, and SPAs have been signed by CP2 LNG with ExxonMobil, Chevron, EnBW, INPEX, China Gas and New Fortress Energy.