Venture Global LNG to go ahead with phase 2 of Plaquemines, La., export plant (updated)

China Gas Holdings

13/03/2023 17:54

(Adds background)
    By Scott DiSavino
       March 13 (Reuters) - 
    U.S. liquefied natural gas (LNG) company Venture Global LNG
said on Monday that it will go forward with the second phase of
its Plaquemines LNG export plant in Louisiana after securing
$7.8 billion of financing.
    Phase two's final investment decision (FID) comes after the
first phase was sanctioned in May. 
        Venture Global said that completes about $21 billion in
total for Plaquemines, the largest project financing ever done
in the space, to build the terminal that would produce about 20
million tonnes per annum (MTPA) of LNG.
    “Venture Global is proud to announce a positive FID for
phase two of Plaquemines LNG, less than 10 months after
sanctioning phase one,” Venture Global Chief Executive Mike
Sabel said in a press release.
    Demand for U.S. LNG increased after several countries around
the world slowed purchases of Russian energy and imposed
sanctions on Moscow after its invasion of Ukraine in February
2022.
        The combination of those sanctions and the shutdown of 
    Freeport LNG
    's export plant in Texas helped drive gas prices to record
highs in Europe  TRNLTTFMc1  and Asia  JKMc1  during the summer
2022.
  
        Analysts have said the first phase at Plaquemines could
start producing LNG in 2024, and the second in 2025.
  
    Venture Global said it issued full notice to KZJV to
continue construction of phase 2, making it the first U.S.
project to take FID in 2023.
    KZJV is a joint venture between Zachry Group and KBR Inc
 KBR.N .
    Venture Global said Plaquemines LNG phase two customers
include units of Exxon Mobil  XOM.N , Chevron  CVX.N , EnBW
Energie Baden Wuerttemberg  EBKG.DE , New Fortress Energy
 NFE.O , PETRONAS, China Gas Holdings  0384.HK  and Excelerate
Energy  EE.N .
        Venture Global has about 70 MTPA of LNG export capacity
in operation, construction or development in Louisiana,
including the 10-MTPA Calcasieu Pass (operation), 20-MTPA
Plaquemines (construction), 20-MTPA Delta (development) and
20-MTPA CP2 (development).
  

 (Reporting by Scott DiSavino; Editing by Chizu Nomiyama and
Marguerita Choy)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))